It’s too complicated to try to figure out which stocks to short and when. Rather, the play is to invest in solid companies that produce non-bubble goods and services and will still be producing that after AI economy crashes. UPS, Kraft-Heinz, Edison International, etc. These companies pay out 5%+ dividend yield and sell massive amounts of real world services and goods that will still be necessary to households and businesses no matter how badly the AI economy craters.
An investment that would pay off if the tech industry went to hell would be Put options on QQQ (an ETF that tracks the NASDAQ-100). You have to get both the timing and the drop correct, and better funded groups with much faster computers AND the ability to make trades to prop up the market while they unload their shit will be competing against you (every options trade has an opposite side and most of them expire worthless). Watch the movies Margin Call and The Big Short for research as much as playing the lottery can be researched (they’re good movies so it’s time well spent anyway). Make a movie night out of it and watch The Other Guys which was directed by the same guy who directed The Big Short. Watch through the end credits.
I didn’t read the article because gizmodo, but as other people here have said, Dr. Burry (he’s played by Christian Bale in The Big Short) often thinks things are going to go south, and there’s usually reason to think so, but in general as Warren Buffett could easily have said, “stonks only go up.” NVDA, AAPL, and MSFT make around 15% or so of the entire world stock market and around 20% of the US market. Nobody’s going to let them collapse and even without the AI craze they still have all the other stuff to fall back on. Thumbs will go on the scale to an extent even greater than the 2008 collapse.
Yeah but how do we PROFIT off of it?! Fuck capitalism because this is a valid question
It’s too complicated to try to figure out which stocks to short and when. Rather, the play is to invest in solid companies that produce non-bubble goods and services and will still be producing that after AI economy crashes. UPS, Kraft-Heinz, Edison International, etc. These companies pay out 5%+ dividend yield and sell massive amounts of real world services and goods that will still be necessary to households and businesses no matter how badly the AI economy craters.
An investment that would pay off if the tech industry went to hell would be Put options on QQQ (an ETF that tracks the NASDAQ-100). You have to get both the timing and the drop correct, and better funded groups with much faster computers AND the ability to make trades to prop up the market while they unload their shit will be competing against you (every options trade has an opposite side and most of them expire worthless). Watch the movies Margin Call and The Big Short for research as much as playing the lottery can be researched (they’re good movies so it’s time well spent anyway). Make a movie night out of it and watch The Other Guys which was directed by the same guy who directed The Big Short. Watch through the end credits.
I didn’t read the article because gizmodo, but as other people here have said, Dr. Burry (he’s played by Christian Bale in The Big Short) often thinks things are going to go south, and there’s usually reason to think so, but in general as Warren Buffett could easily have said, “stonks only go up.” NVDA, AAPL, and MSFT make around 15% or so of the entire world stock market and around 20% of the US market. Nobody’s going to let them collapse and even without the AI craze they still have all the other stuff to fall back on. Thumbs will go on the scale to an extent even greater than the 2008 collapse.