In a story linked from a BREAKING news banner saying “Fears of an AI bubble are hammering stocks for the 4th straight day,” the Wall Street Journal writes with moderate alarm that “Lofty valuations and a pile-up of debt to build data centers have led some investors to question the price of AI-linked stocks. A new survey found 45 percent of fund managers see an AI bubble as the top ‘tail risk’ for markets, and a surge of concern that companies are overspending, chiefly on AI-related projects.”
Copied that verbatim to highlight the, um, glaringly evident kayfabe of it all. If 45 percent of fund managers admit the reality of the effervescence of the current market then, well, you know, the Bradley Effect and all. The existence of this bubble became something approximating conventional wisdom about six months ago and yet the “fear” of the prophecy’s self-fulfillment is what’s taking a toll now. Previously the bubble had been inflated by non-fear, or “bullishness” on the value of AI investments, itself having fully manifested the bubble. In conclusion, the stock market is stupid.