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Now that every generation from gen-x on mostly no longer gets pensions but gets 401ks this can really f up people’s savings that they will depend on in retirement.
Oops didnt mean to! ;)
Damn that’s around 1% of the entire global GDP…
Just wait until you find out how much of these stocks are bought on margin.
What can people do to avoid getting caught by the bubble popping? Remove all tech stocks from their portfolio? What about indices like S&P500?
not much, unless you’re rich and you make some smart hedge bets against it.
diversify assets is always smart, move more of your portfolio to cash and bonds.
Yep hedging would work .
But why do you need to be rich to buy a hedge? A leveraged option can be bought starting from a few dollars.
The issue is not getting the hedge, it’s getting the timing right. Plenty of people saw the GFC crash coming and invested in hedges, but they were too early and lost a bundle.
well if you’re rich and you lose a bundle it wont be a big of a deal, that’s why.
hedges are risky, and it’s much easier to take risks if you have a large cushion to fall on when you fall.
Foreign stock funds.
I’m hedging, mostly with Berkshire Hathaway stock, some agriculture, and a few others that historically perform well in recessions.
I would not touch S&P 500 with a ten foot pole. It’s all wrapped up in Big Tech.
I don’t like shorts; you can’t predict when the drop will hit, so you’re just burning cash betting against growth until then.
I don’t like commodities either. As Buffet said, a big block of gold doesn’t do anything; a factory or farm does.
No, this is have enough canned food scenario.
If the money would wipe out from the economy, that is less money for everyone. First round of bankruptcies will also wipe out contractors and debt issuers of the bancrupted companies, and so on. Mass layoffs. People cannot afford restaurants, or car washes, more businesses out, more mass layoffs.
In 2001 tech bubble the money haven’t been lost. Virtual valuation dropped sharply. But the economy recovered in a year.
This is like 2008, money have been poured into concrete and silicon chips. They were spend, gone for good. It will take a few good years to recover if the bubble would burst.
Commodities.
I bought some value etf to hedge it. There is some theory out there that so called factor investing is worth it. The real deal is of course to catch the bottom. But as we saw with Iran war and the market it all gets eventually priced in even though everything seemingly goes to shit from different directions. I’m not smart enough for this…
You really either ride it out or be OK with the chance of missing out on a few more years of a hot market. I’ve been expecting a big (sustained) correction since 2018 and even COVID couldn’t get it done.
If you need money soon, put it in something fully insulated, like a CD or HYSA if you need it even more liquid. If you need wealth in 10+ years, just ride it out. Keep putting that piece of your paycheck in the infinite money glitch machine.
S&P 500 is fucked, I put a chunk in an all-world ex-US ETF
We’re all witnessing a terrifying game of musical debt. At some point the music is going to stop.
And the chair gets pulled out and the public is left on their ass with the debt. Privatize profits, socialized losses.
Theor goal is to make sure retail 401ks don’t get the last seat.
It’s absolutely crazy to me how many people are investing their 401ks in AI. If you’re gonna gamble away your savings on tech bros, then there’s a much better investment…
As if most people self-manage their 401ks, it’s almost always managed by the holding company unless someone does a PCRA or something along those lines.
The Oracle credit rating is literally one step away from “Junk”!
So at least regarding Oracle, the finance world is onto them.Just a few days ago Oracle was reduced from BBB to BBB-.
Fuck you Larry Ellison
That’s one worse than Bad, Bad, Bad.
Enron got nothing on these crooks.
Enron wrote a chapter in the textbook these guys read as interns.
https://www.justwatch.com/us/movie/enron-the-smartest-guys-in-the-room
A Nikkei study put that hidden figure at $1.65 trillion, up roughly eightfold in four years. It is more than the $1.35 trillion the five report outright.
The Enron echo
The money is tied up in off-balance-sheet vehicles, the same kind of structure Enron used to hide debt before it collapsed 25 years ago. Back then it was fraud. Now, tightened rules and fuller disclosures make it legal.
The tools are still there, though. “Enron’s crime wasn’t having special purpose vehicles,” analyst Gil Luria told Bloomberg Law. “Enron’s crime was hiding them.”
We’re on track for what several analysts said would happen prior to an AI crash around November to February.
OH TAXPAAAAAAYERS
WE’D LIKE ANOTHER BAILOUT
Scratch out Enron, replace with AI companies
I love that they’re promoting the nuclear energy scammers like that.
This is fine.
