Technology

Yeah, it really is painfully obvious that the fatcats are trying to cash out on the bubble before it blows.

Lololololol the president of my company went full AI shithead recently and he posted how it was a big deal that they were going public and he was talking about how he see it as a great investment to purchase shares and I asked how it was a great investment to get shares of a company severely in the red and my comment got deleted in a few minutes

Edit: we also got claude code for everyone in the company and they are monitoring token use (as in we need to use a lot) and I asked if they were concerned that the token price would rise if the board of directors of anthropic suddenly wanted to make a profit and that comment also got deleted (this was in a virtual townhall so we can ask stuff, usually they just ignore the ones they don't want to answer but they were actually deleting them this time)

Sounds like they don't want to go along with these sham corporations and their smoke & mirrors accounting. It's like they want the companies in their index to be on sound financial footing or something.

While I love the sentiment; I'm reading this decision by S&P as just about not bending their rules. AI is not thriving fast/convincingly enough to break tradition of big finance; I don't think that makes S&P an ally. And I suspect this means they'll just be joining a bit later.

ngl if AI dies i hope we get more ethical models, open-weight models (mostly) solve this, but it would be cool if it was trained only on public domain.

Here's an even more interesting one:

It's the P/E ratio (the ration between the stock Price of a company and it's Earnings) of the Nasdaq vs the Price.

Notice how the Nasdaq price has tracked the P/E, with since at least 2020 the stock prices not increasing because company earnings are going up but rather just from increased speculation hence the rise in the ratio of stock Prices to Earnings.

The P/E (in other words, the company stock prices relative to the actual money a company makes) is now about twice as much as back in 2020.

The main issue as usual is US hegemony (or what's left of it) has a way of fucking up the rest of the world. When that bubble pops it's going to cause a whole bunch of industries trouble.

Yup I moved mostly out of usd, no stocks listed in the US, no US Treasuries.

I see either default or massive inflation or both in the cards for the US very soon.

Nasdaq and Russel caved though. I don't know if there is a way to avoid them in our 401k.

The very broad funds definitely will - VTI/VTSAX - but at lower weights and under less time pressure than the rigid index funds (VOO/VFIAX). That takes off a lot of the liquidity squeeze and (presumably) reduces their loss.

But you have to remember that people who use these funds intentionally invest in obvious losers and willingly overpay for hyped stocks because they believe, in the long run, that buying obvious losers is more than balanced by also buying the unexpected winners.

SpaceX is just the first time an oligarch tried so obviously to rig the passive investor structure to his favor, and I'm glad the S&P people didn't cave.

It's not based it's just that every investor can see that AI has no actual profitable future. Also no one wants to have anything to do with the company run by Elon Musk, he has nothing to contribute and tends to spend his entire time generating bad PR.

These are what we call financially sound decisions.