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GreatGazoo

(4,712 posts)
35. Learn to use stop loss
Sat Nov 1, 2025, 01:28 PM
Nov 2025

or set your downside limit mentally and then execute that trade yourself when the market declines by >6% or whatever you are comfortable with.

Index funds will replace losers with winners so for those whose horizon is 2+ years the only risk in not selling on the way down is how long you have to wait for the inevitable bounce.

In 1996 people said the internet was a fad. In 1999 it was "a bubble". In 2002 they said "told you so". QQQ was $120 at the height of the dot com era -- it is $630 today. Up ~400% in 20 years.

Most of the people repeating this "AI is bubble" thing don't understand how AI makes money. Comparing it to the mortgage backed securities of 2007 is wrong for many reasons but mostly because AI is tech, IP and infrastructure but the 2008 crash was just aggressive lending. Deep Seek didn't pop "the bubble" because it is not a bubble. It is military spending, the new arms race, and therefore will not be allowed to fail. The government is taking a direct stake in the key companies. Index funds backed by military spending, tariffs and outright warfare are socialism for the rich.

Same for oil. https://markets.businessinsider.com/commodities/oil-price?type=wtiWTI is good buy anytime it slips under $59 because the US government will always take steps quickly to boost it back over $60. We saw this 10/16 ($57.46) and then it pops 10/21 to $61.79 when the Russia sanctions are announced and Venezuela gets hit. It is not profitable to pump Texas crude when the price dips under $60 and the US is, as the saying goes, 'basically just an oil company with a huge military.'

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dupe Celerity Nov 2025 #1
Great minds... edhopper Nov 2025 #5
Biggest difference in '08 is that Meta, et.al. have tons of money. Callie1979 Nov 2025 #2
That is just Meta edhopper Nov 2025 #6
But META's P/E is about 28; not really inflated compared to the broader market Callie1979 Nov 2025 #10
I don't think that poor people were the main drivers of the 2008 crash. yardwork Nov 2025 #9
Housing defaults were the biggest driver & being "poor" wasnt required. Callie1979 Nov 2025 #12
It was agnostic about poor/rich. The problem was layers of wrapping that disguised the true value of the securities. Bernardo de La Paz Nov 2025 #17
We may already have built way too many data centers. paleotn Nov 2025 #14
+1 leftstreet Nov 2025 #24
They all think they're going to find the pot o' gold at the end of the rainbow FakeNoose Nov 2025 #36
Thanks for the gift link FakeNoose Nov 2025 #3
Can air or ether be far behind? ntp AnnaLee Nov 2025 #4
Well people do pay ridiculous prices edhopper Nov 2025 #7
And there ARE "oxygen bars"! Callie1979 Nov 2025 #13
modern oxygen bars have been around since before I was born (1996) and talked about since 1776 Celerity Nov 2025 #15
Nitwits go to oxygen bars & then consume tons of anti-oxidant supplements. . . . nt Bernardo de La Paz Nov 2025 #18
Somehow, whoever holds it, the debt needs to be serviced. My problem is these tech folks get bailed out by taxpayers. dutch777 Nov 2025 #8
I can easily imagine a government bail out... hunter Nov 2025 #20
I hope it happens before it does more damage jfz9580m Nov 2025 #11
It's a decent article but does not deliver on the title promise. I read it in Celerity's thread Bernardo de La Paz Nov 2025 #16
I think this paragraph lays it out edhopper Nov 2025 #27
Yes, that is one way it might happen. Thanks . . . nt Bernardo de La Paz Nov 2025 #30
I think the article isn't predictive edhopper Nov 2025 #31
It might not crash. It is a bubble, but might deflate in an orderly way, like Meta dropping 11% this week Bernardo de La Paz Nov 2025 #32
I am not sure when the last Bubble edhopper Nov 2025 #34
Taxpayers would probably end up bailing out the scumbag private equity firms like we did the banks and insurers in 2008. SunSeeker Jan 2026 #44
Can't happen soon enough. Borogove Nov 2025 #19
DUPE bif Nov 2025 #21
Be careful where you invest your money, peeps. Joinfortmill Nov 2025 #22
So if you have index funds, buy puts as a hedge (insurance)? 3Hotdogs Nov 2025 #23
80% of the run up this year4 edhopper Nov 2025 #26
Cautiously, after much study Bernardo de La Paz Nov 2025 #33
Learn to use stop loss GreatGazoo Nov 2025 #35
But the billions into Data Centers edhopper Nov 2025 #37
Some of the infrastructure entities GreatGazoo Nov 2025 #40
Appl, Google MSFT,Meta edhopper Nov 2025 #41
Lawyers and their henchmen accountants. or vice versa Tetrachloride Nov 2025 #25
The key point: Meta, Amazon et al will have no responsibility for the data center bankruptcies Bluetus Nov 2025 #28
My greatest concern with AI has nothing to do with economic impact Martin Eden Nov 2025 #29
The Big Short - great break down of 2008 housing collapse... lame54 Nov 2025 #38
Actually, fwiw, snot Nov 2025 #39
Powell just said AI isn't a bubble SamuelTheThird Nov 2025 #42
And the folks that ignored the Housing Bubble agree edhopper Nov 2025 #43
Latest Discussions»General Discussion»Here's How the AI Crash H...»Reply #35