Feed Skupnost
RB
Randolf Babcock
@randolfbab · May 29

I keep wondering if we are in an AI bubble or if the optimism in the markets is justified.

What do you think? 🤔

RR

Bubble, most of the movements are absolutely irrational and unjustified.

RB

I'm leaning that way, too.

WS

When a company's stock chart resembles that of a cryptocurrency, I take notice. :)

RB

True 😀😀

AA

Bubble for me. It's not justified at all. I understand that it's not as tense and the stress can subside, but we're still in the big picture, which we must not take lightly.

MD

I think it's more of a bubble. Or I don't mean to put down companies like $NVDA but considering how their volume has grown and their representation in the indices. Yes, everything rose on Friday also due to the debt ceiling being pushed back to 2025 (not signed yet) but otherwise, I don't think the show is won and room for more sustained growth. The Fed is in play and inflation is still far from their plan to go or approach 2% and this ride also shows just how strong the market is, consumers have plenty of funds from the handouts during Covid. My view is that this will be temporary and at least a drop of 8-10% or so will come. Also that the Fed will raise rates again in June by 0.25b. I would take this as a buying opportunity, as we will definitely go to new highs in terms of the next few years and especially from big tech.

RB

I'm also leaning more towards the bubble version, I just have a feeling that the market could always bail out after the slightest crash, so it's a question of how long before we fly down.

RB

Interesting idea. In a way it is possible, so far it may look like that, the initial stages are already behind us. Accumulation, growth, mania, we are slowly seeing profit taking from investors, so all we have left is panic and depression 🤔

RB

The question is when the cycle will close.

A

Of course we are