In Reply to: What are people's hedge against AI's circular posted by confused442 on October 16, 2025 at 10:58:24
At this point, I don't think any companies who are investing billions in AI are generating much in the way of income.
The similarities to the dot-com bubble are pretty obvious. A bunch of these companies spent money like crazy to gain market share and seemed to celebrate that they were losing money.
One difference is when companies like META, Amazon, and Microsoft spend like drunken sailors, they still have massive profits from other businesses to pay for it. They aren't Pets.Com.
Personally, I don't invest in technology stocks, but that is based on my personal financial situation. I am more concerned with protecting my capital than growing my net worth. I don't need a lot of capital appreciation, as long as I don't see a lot of cuts in dividends.
I am keeping a higher portion of my money in cash than in the past. If it is good enough for Warren Buffett, it is good enough for me.
I am not a believer in gold. If you look at it long term, it hasn't been a great investment, and I am not smart enough to figure out the best short-term play.
I believe in stocks for the long run, but the long run can be VERY long if you are REALLY unlucky. If you bought the market at the wrong moment in the early 1930s, it would have taken you 25 years for your investment to recover its value.
All this is very general. I HATE advisors who propose rules like 60% stocks and 40% bonds. Everyone's financial situation is unique.