ECB warns of 'bubble' in AI stocks as funds deplete cash buffers (Reuters)

Posted by confused_boner@reddit | PrepperIntel | View on Reddit | 4 comments

This is NOT financial advice, please don't try to time the market based on this.

But it is worth keeping a close eye on now and going into early 2025.

The 10y minus 3mo Treasury yield curve has now been inverted for over 750+ days, longest inversion in it's history.

It is only +~10 basis points from un-inverting.

(Tagged NA as it's referring to American AI stocks mainly being of concern)

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DidntWatchTheNews@reddit

Eli5 Treasury yield inversion. And if that's bad. Why does it matter if it uninverts

Tiverty@reddit

I'm not sure the inverted yield curve still has much power in predicting recessions, but here is a great article explaining it:

https://www.npr.org/2024/10/16/1211483980/can-the-yield-curve-still-predict-recessions

I think most US companies won’t lose much of their evaluations if/when AI doesn’t pay off. They invested out of necessity in AI regardless. The chip makers themselves probably will drop back down if a bubble pops, but that’s about it.

Impossible_Range6953@reddit

r/lostredditors