A new breed of brave investors is taking on the tech titans, betting big on artificial intelligence and other popular stocks despite dire warnings of an impending crash.
Jacob Foot, 23, had a hunch about AI's potential in his first job at a chipmaker. He put his savings into US shares with companies like Nvidia, Amazon, Apple, Microsoft, Tesla, Alphabet (Google), and Meta, which he tracked through the Magnificent Seven (M7) list. Five years later, Foot expects to buy a bigger house than initially planned, thanks to his steady stock market bets.
Young investors like Foot are gaining confidence in their ability to navigate turbulent markets. When shares slip, they hold tight, seeing dips as buying opportunities. "I wanted a good balance between 'set and forget' stocks like the M7 and a few smaller companies with good upside potential," he says of his investment strategy.
Companies that bet on rising stock prices are nervous about the new wave of amateur investors, who fuel price increases through sheer demand. According to Xavier Gabaix and Ralph Koijen's inelastic markets hypothesis, share prices surge as money pours into popular assets. Low-cost trading apps, YouTube videos, and social media platforms have fueled this trend.
Industry experts warn that young traders might lose confidence if warnings of a financial crash mount. As the saying goes: "As long as the music is playing, you've got to get up and dance." Retail investors continue to ride out market volatility, but for how much longer?
Amateur investors' fearlessness has led to record-breaking gains in popular stocks like Nvidia and Microsoft. The AI bubble theory suggests that valuations are rising due to money pouring into these companies rather than their fundamental value. As the phenomenon grows, concerns about a potential correction continue to grow.
Sam Woods, former head of the Bank of England's Prudential Regulatory Authority, expressed caution but noted that financial services firms remain "reasonably well-equipped" for the current challenges.
Olivier Blanchard, former IMF chief economist and MIT professor, fears that young investors are creating an environment ripe for financial bubbles to form. His concern is that investors focus on past returns rather than fundamentals, ignoring market warnings.
The future of this trend remains uncertain, with experts weighing in on its sustainability. For now, it seems that these brave investors will keep dancing – as long as the music plays.
Jacob Foot, 23, had a hunch about AI's potential in his first job at a chipmaker. He put his savings into US shares with companies like Nvidia, Amazon, Apple, Microsoft, Tesla, Alphabet (Google), and Meta, which he tracked through the Magnificent Seven (M7) list. Five years later, Foot expects to buy a bigger house than initially planned, thanks to his steady stock market bets.
Young investors like Foot are gaining confidence in their ability to navigate turbulent markets. When shares slip, they hold tight, seeing dips as buying opportunities. "I wanted a good balance between 'set and forget' stocks like the M7 and a few smaller companies with good upside potential," he says of his investment strategy.
Companies that bet on rising stock prices are nervous about the new wave of amateur investors, who fuel price increases through sheer demand. According to Xavier Gabaix and Ralph Koijen's inelastic markets hypothesis, share prices surge as money pours into popular assets. Low-cost trading apps, YouTube videos, and social media platforms have fueled this trend.
Industry experts warn that young traders might lose confidence if warnings of a financial crash mount. As the saying goes: "As long as the music is playing, you've got to get up and dance." Retail investors continue to ride out market volatility, but for how much longer?
Amateur investors' fearlessness has led to record-breaking gains in popular stocks like Nvidia and Microsoft. The AI bubble theory suggests that valuations are rising due to money pouring into these companies rather than their fundamental value. As the phenomenon grows, concerns about a potential correction continue to grow.
Sam Woods, former head of the Bank of England's Prudential Regulatory Authority, expressed caution but noted that financial services firms remain "reasonably well-equipped" for the current challenges.
Olivier Blanchard, former IMF chief economist and MIT professor, fears that young investors are creating an environment ripe for financial bubbles to form. His concern is that investors focus on past returns rather than fundamentals, ignoring market warnings.
The future of this trend remains uncertain, with experts weighing in on its sustainability. For now, it seems that these brave investors will keep dancing – as long as the music plays.
... they're making everyone a day trader and creating this whole new level of market instability! People are throwing money at stocks like they're going out of style without even doing their due diligence. And don't even get me started on the YouTube videos and social media platforms fueling this trend 
... it's just a recipe for disaster.
. They're not thinking about the fundamentals of the companies they're investing in, they're just following the herd and buying up as much stock as possible. And what happens when the music stops? 
I don't want to see a huge market crash because of some amateur investor's impulsive decision.
... some say it's sustainable, others say it's not 
... can we just get some concrete answers here? I'm tired of reading about how uncertain everything is 
. Just give me a straight answer: will the AI bubble burst or won't it? 
. Of course, there's always a risk that things could go wrong, but it's great that they're not just sitting on the sidelines waiting for someone else to make a move 
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. And yeah, the AI bubble theory is definitely something to keep an eye on, but at the same time, it's not like they're all just blindly following the crowd 
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I feel like there's so much pressure for these young investors to make a big splash, but what if they just want to save up for their own futures? They're not trying to take on the tech titans or outsmart anyone - they're just trying to live their lives and achieve their goals. 
I'm loving the energy around young investors like Jacob Foot! They're not just following the crowd, they're actually doing their own research and making informed decisions about the stocks they're investing in. It's awesome to see them taking control of their financial futures 
But seriously, it's amazing how technology is democratizing access to investing and making it more accessible to everyone.
. But I think it's great that experts like Olivier Blanchard are sounding the alarm and reminding us all to stay informed and focused on fundamentals. 
! Who knows what the future holds? Maybe they'll be the ones who spot the next big trend before everyone else 
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. She had this huge collection of old bonds and stocks from the 90s. It was like a treasure trove! Anyway, back to AI... what if we use it to create robots that can make pizzas better than humans? 
! It's like they're playing a game of digital roulette, but instead of chips, it's millions of dollars 
. What if these young investors start to lose their cool when the music stops 
? I don't wanna be stuck in a bubble that's just gonna burst and leave everyone with a bunch of worthless tech gadgets 
. I guess only time will tell, but for now, I'm just over here hyped about the potential 
... some say its good for everyone else in the long run, but what about when it all comes crashing down? 
... i mean, is Nvidia gonna be as big 5 years from now or was this all just hype? 
. The low-cost trading apps, YouTube videos, and social media platforms have certainly democratized access to the market, making it more inclusive for younger investors.
. As Olivier Blanchard pointed out, young investors often focus on past returns rather than fundamental analysis, which can lead to overvaluation and eventual correction 
! But I do think it's essential to acknowledge the concerns of experts like Sam Woods and Olivier Blanchard, who are warning about the potential dangers of this trend 
At least these young folks are not afraid to take risks and get in on the ground floor of something that could be huge. It'll be fun to see how this trend plays out - will they keep riding the wave or will they crash and burn 
We're already seeing the AI bubble theory in action - valuations rising way too high for my taste 
. And I wish those young traders would take a step back and think about what they're really investing in - fundamentals over hype 
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. These young investors are just drinking the Kool-Aid because they don't know any better. They're not thinking about what's really going on with these companies' valuations. I mean, Nvidia and Microsoft are already massive corporations with solid profits – do we really need to throw more money at them?