[rsynnott]

The market can, as always, remain irrational longer than you can remain solvent, or certainly for longer than _I_ can.

Like, come on, you must understand what a stupid response this is? “There is a bubble” is not a sufficient thesis to, well, do much of anything on.

[datavirtue]

Really? Logic wouldn't dictate that if I'm up 300% or more over two years and everyone is starting to get jittery about an AI bubble that perhaps I should pull out now and await the pullback? If it happens in a year, and I can buy back in at a 15-20% discount, that is also a return!! Do you hold for possibly another 5%? That doesn't make any sense. Your cash gets 4% a year just waiting--paid monthly.

[Earw0rm]

Yep, taking your winnings if you're up 300% isn't a bad idea, but timing things right on a short is much harder.

[rsynnott]

Yeah, that you could do, though even then if the timing is sufficiently uncertain you might be in trouble, and it's particularly risky in a time of stubbornly higher-than-ideal inflation. If you happened to have a bunch of Hype-y AI Ltd, then sure, probably. Far less clearly a good idea if you just have the S&P500, though.

It's further complicated by the fact that most of the worst examples of AI hype are not public. Like, if and when the bubble bursts, the hyperscalers will likely get burned, but they're not going to go to zero or anywhere near it.

And that's assuming you already have stocks; it's very different, risk-wise, from shorting or buying puts.

> Your cash gets 4% a year just waiting--paid monthly.

It really doesn't, due to inflation.