Major AI stocks are getting obliterated lately, signaling what may be the beginning of the end for the tech euphoria.

cross-posted from: https://lemmy.ca/post/73158617

Burn baby burn!!!

“Many in the market feel we have no choice but for it to work out,”

Yes this is what it everyone feels like when they are in denial…

    • NιƙƙιDιɱҽʂ@lemmy.world
      1·
      3 hours ago

      Tuna salad sandwich with one regular slice of bread, one butt slice, from a bag I accidentally left open yesterday. I need to go shopping pretty bad…

    • kerrigan778@lemmy.blahaj.zoneEnglish
      41·
      7 hours ago

      I had sushi, it was wonderful. But my wonderful partner made 15 bean soup for the week and it came out so good. Andouille and Italian sausage and lots of pepper and tomato. Just perfect.

  • OpenPassageways@lemmy.zip
    451·
    23 hours ago

    I’m not really seeing a bloodbath, S&P 500 still up more than 10% YTD.

    If that is a bloodbath then what term are they going to use for an actual crash?

    • jj4211@lemmy.world
      101·
      11 hours ago

      The AI sector has suffered losses to the tune of 20-59% over the last month or so.

      Yes some of them are still up YTD (some are even down YTD), but at the same time, the situation in 1929 was similarly less bad looking if you started from January of that year, but the graphs showing how bad it was in practice always start in September.

  • Goodbye_bluesky@lemmy.world
    721·
    1 day ago

    I sincerely hope that a few of the fascist tech bros get absolutely obliterated. If all of them were gone with the snapped of a finger the world would instantly be a better place.

      • gnutrino@programming.devEnglish
        31·
        23 hours ago

        I don’t think a bail out would work (which isn’t to say the Trump administration won’t try it - you can never confidently predict they won’t do something stupid). If they can’t work out how to make a profit after $2T of capex, more money on the furnace isn’t going to help.

        As much as the bank bailouts after 2008 left a bad taste in my mouth, banks are at least self evidently a profitable business that were able to successfully use the bailout to stay afloat.

        I could potentially see the AI companies’ creditors getting a bailout but most of them seem to be private equity so a bailout would be really unpopular (although see my above comments on not betting against the current US leadership doing something stupid).

        On the bright side, there’s a real chance we could see Larry Ellison go personally bankrupt. He lives on loans secured against Oracle shares and Oracle is currently indebted up to its eyeballs and borrowing at basically junk rates. If it goes down, those loans get called and he eats shit (to the delight of Sun Microsystems fans everywhere).

          • vaultdweller013@sh.itjust.works
            6·
            8 hours ago

            Ideally it all gets sold off to pay debts, but the funniest thing would be that its forcibly liquidated after creditors get to the copper sniffing crack head stage of debt repayment and the whole things gets torn apart.

  • nosuchanon@lemmy.world
    251·
    24 hours ago

    The 2098 2008 crash was caused by the rate of mortgage growth beginning to slow. It was a confidence issue in MBS, similar to the AI bubble now. People are starting to lose confidence in their investments and wondering if it is still a good idea to buildout massive data centers.

    • Speltrong@feddit.org
      18·
      1 day ago

      The 2098 crash was caused by the rate of mortgage growth beginning to slow. It was a confidence issue in MBS, similar to the AI bubble now>

      I read that typo like a satire historical comment

        • mad_lentil@lemmy.caEnglish
          2·
          22 hours ago

          Lol like we’re going to have computers then. I’ll be happy if we get to keep indoor plumbing

        • Speltrong@feddit.org
          2·
          24 hours ago

          Lol that’s why I quoted the original seconds after it was made. I’m no stranger to typos and spelling errors and the mocking that follows

    • Carl@anarchist.nexusEnglish
      7·
      20 hours ago

      I mean, you could have your retirement shift towards long-term bonds instead of stocks. Normally I’d suggest index funds too, but those are all tied up in the bubble right now. You don’t need to just sit there and watch your money evaporate.

      • partial_accumen@lemmy.world
        5·
        12 hours ago

        I mean, you could have your retirement shift towards long-term bonds instead of stocks

        With the rise in the Federal Fund rates, that poster would be screwed with bonds too, much worse in fact. Previously issue long term bonds are today worth a fraction of what they were earlier this year.

        People won’t buy your old bonds (at their lower interest rates) when the US Treasury is issuing new ones right now with much higher yields. You can still hold the bonds to maturity to get all of your money back, but if you need to sell your bonds on the secondary market right now for cash to live on (presumably for those already in retirement) you’re going to take a sizable loss.

        Gold is significantly down too. 17% decline in value year-to-date.

        Residential real estate is down with the increase mortgage rates. Commercial real estate is in the toilet too since COVID really.

        The stock market, even with this recent dip, is actually actually outperforming most other traditional investments. The good news for folks with retirement savings who are still working is that no value is actually lost until you sell you investments (stocks/bonds/gold/whatever). If you’re still a decade or more away from retirement thats a LONG time for a recover to bring back value from this current downturn.

    • iamthetot@piefed.caEnglish
      31·
      21 hours ago

      You can and should be involved in what your retirement is invested in. If you’re concerned about this, you could move that money into something safer.

  • Hotznplotzn@lemmy.sdf.orgEnglish
    91·
    22 hours ago

    In China, the AI bubble has already burst

    … The meltdown, tanking the mainland STAR50 index of AI and semiconductor leaders by 40% in less than four months and vaporising some $480 billion in market value, is an ill omen for wobbly world markets and a dampener on China’s efforts at encouraging its savers into stocks to fund the AI boom.

    … With AI stocks running to 42% of China’s market capitalisation and 57% of turnover across mainland-listed A-shares and Hong Kong’s H-shares, according to Goldman Sachs, few in a market dominated by small investors have escaped pain.

    … Shares in robot-maker Unitree, 8,000 times oversubscribed by retail buyers at listing, have halved since they started trading in August, and chipmaker CXMT has lost more than a quarter of its value in the past month.

    … Chipmakers MetaX Integrated Circuits and Moore Threads Technology, which leapt 700% and 400% respectively on their market debuts last year, have also halved in value since July.

    … Frustration that an investment theme backed by Beijing has ended so badly has driven many investors into defensive assets and is likely to slow equity fundraising by tech firms.

    A remarkable detail in China, citing the report:

    The frenzy and its fallout contrast with a push by authorities to improve returns and dampen volatility by cracking down on leverage and high-frequency trading. State-backed investors were sellers into rallies to keep gains in check.

    [Emphasis mine.]

  • 87Six@lemmy.zip
    8·
    22 hours ago

    I think I’ll hold off investing in my index fund for a while longer lol

    • partial_accumen@lemmy.world
      4·
      8 hours ago

      I can understand being wary about the stock market right now. However, inflation is at 3.7% right now for the year up from 3.4%. You can continue hold onto your money, but it buys approximately 3.7% less than it did in January 12 months ago overall. If you’d put that money into the market in Jan 1 a year ago instead of having 3.7% less, you’d have a 6.82% more now, but you can’t go back in time with that knowledge to do that.

      If you’re looking to park your money safely without having it eaten up by inflation, currently US short term (4-weeks long) treasury bills are paying a bit more than 3.9%. .2% profit is not much profit, but its better than a 3.7% loss in value.

      edit: corrected specifics, thank you @boonhet@sopuli.xyz

      • boonhet@sopuli.xyz
        3·
        10 hours ago

        To be clear that 3.7% is the 12 months ending in September, not January through October. Inflation is rarely measured YTD, it’s usually the trailing 12 months

        Meaning the

        but it buys approximately 3.7% less than it did in January overall.

        part of your comment is inaccurate

      • BooBees@fedinsfw.appEnglish
        7·
        1 day ago

        What if we sold all the parks and most of the buildings to foreign nations and billionaires and their friends?

        • Corkyskog@sh.itjust.works
          4·
          23 hours ago

          The land is infinitely more valuable than the buildings, the problem is you would have to be a total moron to buy it without congressional legislation, as the next president will just wipe his ass with the EO.