Key insights
- The author expresses concern over a potential AI bubble burst, citing hawkish central banks due to inflation from geopolitical events (Strait of Hormuz), market manipulation via tweets, a rally in gold, and record Swiss bank deposits as indicators of risk aversion. Elevated AI stock P/Es are seen as unsustainable, suggesting a broader market downturn may be imminent.
I'm really worried now about this situation in the financial markets. Most global risk assets have already corrected, Central Banks are getting Hawkish due to inflation caused by the Closing of the Strait of Hormuz, Trump keeps pumping and dumping the Market with his phony tweets, gold had a big run in recent months and Swiss Banks are receiving record deposits of people looking to protect their money. Everybody knows AI stocks forward P/Es are inflated and unrealistic.
Is this the beggining of the end?