With everybody investing on index funds, directly or indirectly through their 401k, does economics ever have a time to catch up? Being out of the market during the crazy hype means losing out on "easy" gains, so basically it keeps going up and up, these companies get even more hyped, and I wonder what's the end game.
I keep hearing that retail investors are just small fry and have no power to affect any stock's valuation, but certainly the hype spreads to big money as well.
Even if I'm way off the mark, I would love to read about what happens to the economy in the mathematically plausible case that people keep buying and no one ever sells enough to mitigate the hype.
That's my real fear, that I have massive indirect AI bubble exposure while having zero direct exposure. Similar to how relatively few Americans had liar loans, but we all got burned by the subprime crisis. And then there were those bad actors that made the crisis work for them, and we got burned again during the uneven recovery.