Goldman Sachs: AI Won't Spark Economic Revolution, Bubble Bound to Burst
If July 11 marked the end of the U.S. stock market AI bubble, what's next? The tech bubble burst in 2000 showed similar volatility: tech stocks underwent massive rotations before the market-wide crash ensued.
UBS believes small-cap stocks currently lack strong fundamental support. Future economic stability and cooling inflation are crucial for the performance of small caps. The rotation towards small caps might continue, but only if large-cap tech earnings growth slows down.
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The Learner : May be we have some more time to play around as the article also says the below:
And yet, he has no doubt that the reckoning is coming. It might not be this year or even next year, for that matter, but at some point, he says, it’s happening.
Pollster : So why doesn’t Goldman sell its tech holdings , didn’t they predict bitcoin is going to 100k in 2022 , it’s obvious that they have a lot of cash on the sidelines sitting in bonds , so now are releasing these reports anticipating higher prices when they buy and they don’t want egg on their face , when they settled for 5 % returns losing out on 100 % returns . Add to that Nvidia has revenue visibility today not some distant future . The truth is qualified institutions hate underperforming retail