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by SpicyLemonZest
1 hour ago
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I don't think there's a good way for individual investors to position themselves against economy-wide investment misallocation. As The Big Short also covered, any profitable short position is going to require making a risky bet about when the bubble will pop, and when things get chaotic there's no guarantee that instruments which "should" be correlated to the thesis will actually remain so. You can: * identify a bad AI stock at $100 today * produce an ironclad 100% guaranteed proof the company's valuation will drop below $50 by the end of 2028 * buy a bunch of long-dated puts with a break-even of $75 * see the AI investment bubble visibly falling apart in let's say March 2027 and you still lose if OpenAI acquihires the team at $80 in an attempt to prop things up. |
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