The Mother of All Bubbles is Here… What to Do If and When it Pops?
Over the last month, we have been warning about a massive bubble we believe is forming in “AI stocks” and mega technology stocks as defined by Google, Meta, Nvidia, Netflix, Apple, Amazon, and Tesla. Whether one is measuring a bubble as defined by market capitalization, share of investor dollars, or valuation, this bubble, in our opinion, checks off all the boxes required to be a bubble. What makes a bubble hard to avoid is that if you’re sitting on the sidelines, you look stupid while the party is in full throttle. But as we learned last year, once the bubble pops, it’s over.
In this week’s update, we review the state of the bubble in technology, how close we think the bubble is to popping, and what we’re doing NOW to position for tomorrow.
Key Takeaways
We believe the technology bubble is dangerous as it represents a huge piece of investor portfolios
We think the labor market is beginning to crack and bears watching
If the technology bubble pops, we expect dollars to flow into commodities
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