This is true. The 2008 crisis was about banks. Banks are linked to everything. Most companies aren’t that deep into an AI transition. They can still shrug it off and go back to what they were doing.
The big tech companies are fucked. The Saudis who just bought EA are fucked (their plan was to reduce costs by making games with a lot of AI tools). Nvidia is really fucked. The rest? They may have to reverse some plans, but they can shrug it off.
qjkxbmwvz@startrek.website 3 weeks ago
Not sure I agree.
First, stocks tend to be highly correlated with “the market” (see financial “β”/“beta coefficient”). For example, look at, say, The Home Depot or Ford Motors. From January 2000 to January 2003 (spanning the dot com bubble) they each lost about a third of their value, yet these are not “dot com”-centric companies.
Second, the promise of AI is that it will help every company that has desk jobs. So every company has this expectation now priced into their stock, and if the bottom falls out, well…
Not an analyst/I don’t pick stocks, but just my 2¢.