Prof G Markets AI Bubble Watch: Has the Hype Gone Too Far? — ft. Josh Brown
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Aug 25, 2025 Josh Brown, co-founder and CEO of Ritholtz Wealth Management, shares insights on the recent tech selloff and the state of AI investments, questioning if we're in bubble territory. He discusses the implications of new regulations allowing alternative assets in 401(k) plans and the pros and cons for retail investors. Brown also predicts the Federal Reserve's next moves post-Jackson Hole. With his market expertise, he highlights the balance between high AI stock investments and the need for diversification.
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AI Theme Is Over-Owned And Fragile
- AI hype is currently over-owned and fragile, so small negative signals can trigger large sell-offs.
- Josh Brown warns investors not to chase more AI names if they already own exposure to the theme.
Stop Hunting For Your 21st AI Stock
- If you already hold many AI positions, stop hunting for another AI stock to add to your roster.
- Prioritize diversification and avoid piling into the same theme repeatedly.
ETF Proliferation Concentrates Risk
- Twenty AI ETFs and another ten infrastructure ETFs concentrate investors into the same handful of mega-cap names.
- That creates extreme market concentration and amplifies moves when sentiment shifts.