Key insights
- The author expresses concerns about an AI bubble and seeks investment options to outpace inflation amidst stagflation fears. They highlight the dollar's declining purchasing power and desire safe assets not heavily reliant on AI. The overall tone suggests caution towards AI-driven market gains and a preference for inflation-hedged strategies.
I recently cashed out on my NBIS shares, which grew to gobble up almost 90% of my portfolio. I sold to secure profits (obviously) but also because I truly believe AI, while inherently useful and promising - is definitely a bubble right now and is being overvalued by the market - especially since most corporations themselves either don't know what to do with it or are using it for tasks that have no hope of providing a return on investment for the trillions that have already been sunk into its build out (literally just summarizing articles, or basic research and coding etc).
That being said - Inflation has not been this high since 2023 (3.8%), and there really doesn't seem to be any end in sight with puppet Warsh now at the helm and the tone in the White House - the move seems to be "own assets or be left behind". Add to this that the U.S dollar has lost 30% of its purchasing power since 2020.
I want to keep my money in the market - but honestly what is the move here? Every industry seems to be exposed to AI to some extent - and to be honest all I want in the short term is not to beat the market (since there is no way to do that without jumping on the AI bandwagon) - but to merely beat inflation at the very least.
What are some safe asset classes/stocks/ETFs to accomplish this?