The Oracle credit rating is literally one step away from “Junk”!
So at least regarding Oracle, the finance world is onto them.

businessinsider.com/stock-market-orcl-ai-oracle-c…

Just a few days ago Oracle was reduced from BBB to BBB-.

Fuck you Larry Ellison

What can people do to avoid getting caught by the bubble popping? Remove all tech stocks from their portfolio? What about indices like S&P500?

not much, unless you’re rich and you make some smart hedge bets against it.

diversify assets is always smart, move more of your portfolio to cash and bonds.

Yep hedging would work .

But why do you need to be rich to buy a hedge? A leveraged option can be bought starting from a few dollars.

The issue is not getting the hedge, it’s getting the timing right. Plenty of people saw the GFC crash coming and invested in hedges, but they were too early and lost a bundle.

well if you’re rich and you lose a bundle it wont be a big of a deal, that’s why.

hedges are risky, and it’s much easier to take risks if you have a large cushion to fall on when you fall.

Those are reasons why loses aren’t as big of a concern for rich people. Not why hedges are only for rich people.

The cost of a hedge is proportional to the assets being protected. If someone has say a $10,000 portfolio of stocks, and they think the market will crash in the next month or two, they could buy a protective option hedge for around $100. And if someone has a portfolio of $300 million, they could hedge for ~$3 million. Wealth is irrelevant.

Also hedges aren’t risky. They reduce risk. They’re insurance.

Foreign stock funds.

International markets will feel this too I’d imagine.

I mean you can sell everything and leave it in cash i guess. But you have no idea how long these fuckers can keep the house of cards propped up. Government bailout, angel investors, who knows.

Or if you really wanna get risky you could try to find a fund that shorts the market, specifically tech companies, then you could actually make money instead of just not lose any. I’m assuming you don’t want to get into options trading.

But again, timing is the biggest issue. There’s an old saying “the market can stay irrational longer than you can stay solvent”.

We’re all witnessing a terrifying game of musical debt. At some point the music is going to stop.

And the chair gets pulled out and the public is left on their ass with the debt. Privatize profits, socialized losses.

Theor goal is to make sure retail 401ks don’t get the last seat.

It’s absolutely crazy to me how many people are investing their 401ks in AI. If you’re gonna gamble away your savings on tech bros, then there’s a much better investment…

As if most people self-manage their 401ks, it’s almost always managed by the holding company unless someone does a PCRA or something along those lines.

Isn’t that exactly like buying houses in 2008?

Now that every generation from gen-x on mostly no longer gets pensions but gets 401ks this can really f up people’s savings that they will depend on in retirement.

Oops didnt mean to! ;)

Damn that’s around 1% of the entire global GDP…

Just wait until you find out how much of these stocks are bought on margin.

And like magic, there was just an article that said margin debt at an all time high… either we’re going to have a whole new class of billionaires, or we’re about to see a bubble pop like no other.

Actually you will see both. the current bubble we have now is the largest ever seen. A lot of people are going to their retirements, have to go back to work, lose their investments that are heavy in the bubble. But this is going to create billionaires from companies that survive and continue to provide AI services, and people that bailed before the bubble, and people betting on the crash. They will be the new generation of rich.