2024-07-18 18:27:33 ET
Summary
- Price insensitive and valuation insensitive passive fund flows are creating the biggest bubble in modern market history.
- Case in point, Nvidia's stock price has reached absurd levels, reflecting the current market insanity.
- The irony is that the pain and suffering that Jensen Huang rightly preaches will be ultimately borne by Nvidia shareholders, in my opinion.
“If everybody indexed, the only word you could use is chaos, catastrophe… The markets would fail.”
- John Bogle, May 2017.
“The AI hype is a classic example of a big market delusion. It's just like the dot com era when everyone was laying huge bets the internet would change everything. The narrative was correct. But the market bet that narrative would play out a lot faster than it ultimately did.” ...
Read the full article on Seeking Alpha
For further details see:
Nvidia Is Still Historically Overvalued With Negative Catalysts Developing