Prof G Markets The AI Bubble Is Real — Here’s How to Prepare for the Pop
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Oct 13, 2025 Scott and Ed dive into the compelling concept of an AI bubble, debating its implications for investors. They analyze Tesla's challenges and the potential for AI innovations to reshape its future valuation. The hosts also discuss why America's unique firing culture may be a key driver of innovation. Additionally, they look into the surge of gold prices amidst speculation and consider strategies for investors to manage risk in a volatile market. It's an insightful exploration of technology, finance, and the shifting landscape of corporate America.
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Honeymoon At Lehman Collapse
- Scott recalled getting married the evening Lehman collapsed and doing board calls on his honeymoon.
- He used the story to illustrate how crises intersect with personal life and career stress.
America Is A Giant Bet On AI
- America is effectively a giant bet on AI with a small number of companies driving market gains and political cover.
- Circular deals and incestuous investments around NVIDIA and others amplify bubble risk.
Circular Deals Inflate AI Valuations
- Interlocking board positions and cross-investments create circular financial flows in AI.
- Those synthetic relationships raise systemic risks and can inflate valuations artificially.