The easiest way to play burst the AI bubble
- BCA Research Recommendation: Strategists at BCA Research recommend buying the Japanese yen as the easiest way to profit from the potential bursting of the AI bubble.
- Current market situation: The S&P 500 and Nasdaq 100 indexes are approaching record levels, but U.S. technology stock prices are falling, suggesting turbulence. The price-to-earnings ratio of US technology stocks has fallen by 8% since July.
- Correlation between the Japanese yen and technology stocks: BCA points to a strong correlation between US technology stock valuations, bond prices and the Japanese yen.
- Forecast for the yen: If US technology stock valuations return to 2023 levels, BCA forecasts the yen to appreciate to USD/JPY = 130.
- Investor Strategy: Investors should overweight the Japanese yen in their portfolios, which should help them weather the bursting of the AI bubble.
This is not for me. I'm staying away from it.
That looks interesting. Maybe I'll put some money into it.
The question is whether it's a bubble. I'm not betting against it. I believe AI companies will still thrive.
I get it, it doesn't look bad and it makes sense. But I don't know how to do this, so I'm not gonna do it.
Well, he's just gotten a lot weaker in the last few months. Volatility is there, so a trade on forex could probably be found. I don't trade currencies though, so I'll leave that to others :)