UK pension funds dump US equities on fears of AI bubble
https://www.ft.com/content/9d90d557-48e5-4f4b-a927-88071cef8ea9
Posted by Gentle_Snail
UK pension funds dump US equities on fears of AI bubble
https://www.ft.com/content/9d90d557-48e5-4f4b-a927-88071cef8ea9
Posted by Gentle_Snail
9 Comments
I’m honestly just waiting for the pop so I can buy cheapies, currently funding more into UK and Euro/Emerging market stuff while I wait for it since they’re currently cheap relative to it at the moment. They’ll probably get hit as well but hopefully less so.
US growth is basically zero without data centres, unfortunately so is the UK’s.
Could be like the dotcom in the sense of a bubble. But like the internet the tech itself is incredible and is going to be a big part of our future.
The AI companies are investing in each other, new money going in is slowing..
I have been in S&P500 for about 8 years non stop. Last week sold it all for a broader global index tracker, won’t protect me from the bubble popping but at least won’t be as impactful.
People need to realize it’s other companies investing into other companies to generate money, which means once the money stops they’ll first try the consumer so expect the AI they have to be heavily monetized.
They ain’t gonna just waste that money without seeing something
Even if it does pop, the cost for everyone is gonna be massive
This makes sense.
65% of the World Index is the USA.
If the US has a downturn then people a lot of people are less protected than they might think.
I already moved a lot of my pensions into a mix of world, ex-US, emerging markets and small cap.
Maybe the returns will be lower but I’m less exposed to the top 10 tech companies all in the US messing up.
I hear a lot of bad press about AI. But I’ve noticed it being used more and more in everyday life? Are we sure it’s a bubble that’s going to be popped?
I know people equate it to dot com. But that was bunch of small companies who got wiped out while the ones who succeeded minted money. This is all big companies
Hardly surprising. I’m old enough to remember the dot com bubble.