>>22274866Ok yeah, if you put AI stuff into all that, a larger dump could be possible. It would cause the techsector to dump hard. On the other hand the rest could pump (like it pretty much happened a few weeks ago)
I believe AI will be a cheap business model, if there won't be an intervention by the Tech Oligarchs to create a cartellike monopoly on AI and artificially pump prices to setoff their large investments in the past years until DeepSeek happened. So the revenue of AI companies (software providers) and their valuation will become like Telecom companies, like VZ. That eventually will also hit the hardware providers further down the line.
Yes, the market currently is like a bubble, this AI pump was too early and it was a damn hype pumping the whole market. But I also am not as sceptical about AI anymore as 1-2 years ago. I think it will have a productivity boost. I mean, I've seen quite some earnings where the EPS beat strongly but revenue was weak or in line with expectations.
The more advanced AI gets the more employment could suffer though, so it may lead to another crisis in a few years.
>>22274899I also don't get it in regards to the trade deficit.
Yeah, well lower labor costs.. that is "problematic". Who would want to work for so little money? We, the rich western countries, simply benefitted from globalization. The consumers and surely also the companies. It's an exploitative system. An IPhone fully "designed and assembled in the US" would have cost x-amount the price in the past, at least if AAPL wanted to keep the same profit margin.
I just thought recently if I was to make a vacation in the US, how much that would cost since now the EUR has become weaker vs the USD AND your prices are so much higher. It's a luxury to do vacation in your country. And for your wealthy it is no issue to do vacation anywhere on the world with how much you earn.
