• Trainguyrom@reddthat.com
    link
    fedilink
    English
    arrow-up
    28
    ·
    4 days ago

    Honestly the AI bubble is going to take the entire stock market with it. Over a quarter of the S&P 500 (an index of the 500 and something most valuable companies on the US Stock Market) is made up of tech companies directly investing in the AI bubble, and most individuals and funds these days invest into indexes rather than individual stocks so when a single overvalued market sector making up over a quarter of the market loses most of its value, every stock portfolio is going to lose a shitload of value.

    • Baguette@lemmy.blahaj.zone
      link
      fedilink
      English
      arrow-up
      9
      ·
      4 days ago

      If the AI bubble pops, people’s retirement will also probably disappear tbh. Lotta money right now in IRAs and 401ks

      • Trainguyrom@reddthat.com
        link
        fedilink
        English
        arrow-up
        11
        ·
        4 days ago

        Yeah it’ll be bad, but realistically it’ll be like every other major economic calamity. Your accounts lose a ton of value very rapidly, but as long as the money keeps going in (or as long as you have a small enough withdrawal rate if you’re already retired) ultimately it’ll eventually bounce back and then some in the recovery, because when stocks are down that’s the time to pile more money in (buy low sell high)

        • Baguette@lemmy.blahaj.zone
          link
          fedilink
          English
          arrow-up
          12
          ·
          4 days ago

          It depends on the person’s age group, if they just hit retirement and the stock market collapses, then they’d feel the pain the most. It could mean delaying their retirement by years.

          Younger people on the other hand usually bounce back, unless of course there are other circumstances like war.

      • outhouseperilous@lemmy.dbzer0.com
        link
        fedilink
        English
        arrow-up
        6
        ·
        edit-2
        4 days ago

        It’s going to happen and we cannot keep subsidizing this shit.

        Like, sorry about your imaginary deserves-to-live points, im sure your dumb game is very fucked by this, but that money’s on the roulette table and the wheel is spinning. We got productive capacity electricity ghg’s and fucking water to salvage.

        • Baguette@lemmy.blahaj.zone
          link
          fedilink
          English
          arrow-up
          4
          ·
          4 days ago

          ._. I never said I supported the stock market, just that the stock market collapse will affect a lot of people.

          If I had it my way, companies should never be public. Lots of current day issues are because public companies act upon shareholder whims and thus cause the worst of modern day societies

          I’d love to have pensions also be reintroduced in companies, but they’ve essentially been all phased out by lobbying for 401ks and IRAs instead.