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Tech stocks set to wipe out more than $1 trillion as concerns deepen about the AI boom (www.nbcnews.com)
submitted 14 hours ago by to c/technology@lemmy.world
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[–] 11 points 13 hours ago (13 children)

So should I withdraw whatever i have in technology index funds, while I have the gains?

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  • [–] 7 points 12 hours ago (7 children)

    If you have a place to park it that will earn more or lose less, definitely. Putting into cash will lose at least 3% per year.

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  • [–] 2 points 12 hours ago (3 children)

    I'm thinking withdraw my gains, wait for the crash, buy in again? Damn, it's a gamble...

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  • [–] 8 points 12 hours ago

    Timing the market usually fails. Dollar cost averaging can give you a small advantage.

    Assuming that AI follows a similar path as the .com boom... A lot of companies will go under leaving a few companies who will benefit greatly. It's not that AI is going away. We're just pruning the dead wood.

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  • [–] 1 point 12 hours ago* (last edited 10 hours ago) (2 children)

    My uneducated and impoverished thought is cash will buy you real estate which is about to get really cheap, whereas any stock you buy today is going to have a severe crash very soon.

    But most of my investments are in beans: i've got jars or black, red, garbanzos, kidney, and navy beans; also a variety of lentils.

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  • [–] 3 points 11 hours ago (1 child)

    Real estate has the potential to be cheap in 20 years as the baby boomers die leaving smaller generations to buy their larger number of homes.

    Any kind of asset can be a good investment. If you have a place to store it, classic cars only go up in price and some of them are under 10K. Bonus: you get to drive them. I know someone whose 401k is mostly collectable guns (rare, 100+ years old guns). You just need to choose something with lasting value. Don't repeat the Beanie Baby crash.

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  • [–] 6 points 12 hours ago

    @P1nkman It depends. There is no universal answer.

    About two months ago I read a very astute article about this circular, excessive financing in data centers and chips and thought, “here we go again.” Cashing out locks in your losses. That was my mistake in the last tech bubble. This one is set to be worse. This time around, I’m much more diversified and my personal answer is “no.” I moved about 10% of my tech funds into low-risk investments and the rest I will let ride. It may take years for recovery, but I can wait.

    If you think you will need that money in the next few years, you might consider taking at least your profits now, maybe more. If your investments are in your retirement account then you also have to reckon your potential tax liability now versus later.

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  • [–] 3 points 12 hours ago* (last edited 12 hours ago)

    In theory you could short Microsoft, NVidia, etc. but the market can stay irrational longer than you can stay solvent, so even though those stock prices are a crack fueled fever dream, betting against them is likely gonna be a trip to the poor house. I saw someone on here recommend some funds that are mostly large cap, traditional companies (read, not big tech) and some bond funds. I was going to research his recs today and see if it would make sense to move some money out of the S&P 500 index fund that I lean on way too much (of couse, it would have been better if I considered this a week ago 🤦🏾).

    Lemme see if I can dig up that post…

    Hopefully this link works, I’m using Voyager and haven’t figured out how to link posts https://lemmy.world/comment/26583022

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