The entire US economy is currently being propped up by growth in the AI/tech sector. And I am convinced that LLMs are fundamentally incapable of delivering on the promises being made by the AI CEOs. That means there is a massive bubble that will eventually burst, probably taking the whole US economy with it.

Let’s say, for sake of argument, that I am a typical American. I work a job for a wage, but I’m mostly living paycheck to paycheck. I have maybe a little savings, and a retirement account with a little bit in it, but certainly not enough that I can retire anytime in the near future.

To what extent is it possible for someone like me, who doesn’t buy into the AI hype, to insulate themselves from the negative impact of the eventual collapse?

  • Smoogs@lemmy.world
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    2 days ago

    Shorting counts as income and you’ll be taxed on it as income. You also have a chance that no one will buy you out of the hole once it hits its mark.

    Lots of risks in shorting.

    While I agree with diversifying, the tariffs are fucking over the stock market hard in so many ways you cannot avoid it. Right now everyone sold their gold cuz they need money, And two days ago the tariff on China created a ripple on the precious metals. Tomorrow trump will fart some blithering assanine remark and suddenly for whatever reason lithium will take a dive for it.

    Investing has become a stupid stress game.

      • Smoogs@lemmy.world
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        1 day ago

        …Tariffs affect other countries stock so you’ll get the same swing on the international. Im not sure you’re understanding how stocks work and maybe you’re just saying buzz words? Well… Either way, op is worried and they have a good reason to worry. They are educated enough about stocks to be worried. You…. You not so much.

        • reptar@lemmy.world
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          21 hours ago

          Be nice!

          US tariffs don’t exclusively hurt other countries stocks. You can compare an international domestic and emerging markets index fund to US domestic ones and see quite a divergence. The one I’m familiar with, ACWI, is up 21.8% YTD.

          • Smoogs@lemmy.world
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            2 hours ago

            So getting to the point: I’m not sure of the point you’re making here as the reference you’re using is all domestic funded in the US. You didnt provide the comparison to the international. And the point of the post was that the going up is the bubble OP is worried about. You’ve done nothing more than establish what was already the fact OP was posting on. We are well past this.

            If youre laying down information I’m checking it because there’s a lot of misguidance and misinformation online. If you think it’s not appropriate to call it out then you have a big problem here. I’m not going to apologize for being a critical thinker and you’re just going to have to figure out a way to live with that cuz compromising myself isnt going to come at the cost of approval from random strangers online.

            As far as politeness: so far you’ve not posted in good faith. And so I owe you nothing. Now you may proceed to clutch your pearls.