Know Your Risk Podcast It's a Bubble, But the Tech is Real
Oct 7, 2025
Zach dives into the complexities of the current market landscape, highlighting the rising VIX amid a rally and its implications. He warns of a potential market bubble driven by AI, while discussing why companies are compelled to invest heavily in this tech despite questionable short-term returns. The importance of gold and undervalued sectors is emphasized as safer investment avenues. Additionally, he explores how AI might disrupt existing business models, creating both opportunities and risks for investors.
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VIX Rising With Markets Is A Red Flag
- Rising VIX alongside higher equity prices signals unusual market anxiety despite bullish indexes.
- Zach warns this combo often precedes significant short-term pullbacks or volatility spikes.
Bull Run Could Be A Euphoric Blow-Off
- The current rally may be a euphoric blow-off detached from fundamentals and valuations.
- Zach argues limited catalysts remain other than dollar degradation, which has mixed long-term effects.
AI Spending Fuels A Company-Driven Bubble
- AI spending creates a valuation bubble for investors while genuinely necessary for companies' survival.
- Zach explains firms must overspend on AI to protect moats, causing sector-wide price inflation.