Is the AI Bubble Starting to Burst?

Ferenc discusses the parallels between the current tech stock market bubble and the dot-com era, emphasizing the risks of overvaluation and potential corrections. He recounts a listener's 100% return on tech stocks and warns of the dangers of not locking in gains. Ferenc highlights the MIT study showing 95% of companies saw no return on AI investments, and the potential for a severe market correction. He also addresses the Federal Reserve's new inflation target and the implications for interest rates. Ferenc advises on risk management strategies, including annuities and cash value insurance, to protect against market downturns.   Issues & Risks    

• • AI stocks may be in a bubble, similar to the dot-com era.  
• • According to a MIT study 95% of companies investing in AI have seen no financial benefit.  
• • Tech stocks account for 46% of S&P 500, higher than dot-com peak.  
• • Margin debt has surged to an all-time record of over a trillion dollars.  
• • Heavy truck index, a recession indicator, is going down strongly.  
• • Nvidia's valuation is now triple the entire energy sector.  
• • A third of the US economy is in recession or at high risk.

 

How do you take advantage of future potential upside while protecting your downside?

 

Annuities offer unlimited upside potential while guaranteeing the principle against loss. 

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- If you own an annuity 2+ years old, I strongly recommend comparing to the newer more profitable products.

- Many of my clients are earning 2-10x increased returns annually than their previous annuity products!

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