Stock markets rise on Anschau
Japanese interest rates, the yen, and high-return investment (AI) could break, and once broken, “the whole bench will collapse.”
Selling yen may not be the same as buying AI stocks, but yen selling pressure and AI bubble inflation are both ends of the same trading process. Selling the yen helps prolong the AI bubble, while the expansion of the AI bubble encourages selling the yen. So there is a causal relationship between the two, not so much as an interaction. The combination of yen spread trading with the AI bubble is important because all bubbles require leverage. In the case of an AI bubble, leverage is to borrow Japanese yen.
On the other hand, whether the AI share boom will continue, let's see how quickly companies that invest in AI can reap the rewards. Josh noted that tech superstars such as Intel, IBM, Oracle, and Cisco in the early 2000s have largely faded, and only Microsoft has successfully transformed into a Web 2.0 major winner. As for today's superstars, he thinks Nvidia is unlikely to be a long-term winner, and at most only one or two companies will stand out as AI big winners. Josh said: “This means that the total valuation of these superstar stocks has swelled to a dangerous degree, especially as the price of these AI stocks has continued to rise on the yen margin trading.
Selling yen may not be the same as buying AI stocks, but yen selling pressure and AI bubble inflation are both ends of the same trading process. Selling the yen helps prolong the AI bubble, while the expansion of the AI bubble encourages selling the yen. So there is a causal relationship between the two, not so much as an interaction. The combination of yen spread trading with the AI bubble is important because all bubbles require leverage. In the case of an AI bubble, leverage is to borrow Japanese yen.
On the other hand, whether the AI share boom will continue, let's see how quickly companies that invest in AI can reap the rewards. Josh noted that tech superstars such as Intel, IBM, Oracle, and Cisco in the early 2000s have largely faded, and only Microsoft has successfully transformed into a Web 2.0 major winner. As for today's superstars, he thinks Nvidia is unlikely to be a long-term winner, and at most only one or two companies will stand out as AI big winners. Josh said: “This means that the total valuation of these superstar stocks has swelled to a dangerous degree, especially as the price of these AI stocks has continued to rise on the yen margin trading.
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