🇺🇸 Some of the hottest AI stocks are already down around 75%… while the Nasdaq sits just 6% off its record.
Keith McCullough says that gap is exactly how bubbles break, with the most speculative names cracking first and the rest of the market catching up later:
“The AI bubble components have definitely not only started to pop, but drop and crash.”
The Nasdaq set its record on Oct 6 and has slid about 6% since, so the real test is whether the giants follow the small fry down.
@KeithMcCullough
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Mario Nawfal (@MarioNawfal)Keith McCullough: The AI bubble is already bursting, and the worst may still be ahead.
I spoke with Hedgeye founder Keith McCullough as markets took another beating, and even he was caught off guard.
He had invested in Brazil ahead of the election. Lula won, Brazilian stocks plunged, and Keith took a painful loss.
But his bigger concern is America.
He believes the AI bubble is already collapsing beneath the surface, with some of the most speculative stocks down roughly 75% from their peaks.
Meanwhile, oil remains above $100, inflation is accelerating, and another war with Iran could leave the Federal Reserve unable to rescue markets.
Keith thinks U.S economic growth could fall from nearly 4% to just 1% within nine months.
Ordinary families are already struggling with prices, job insecurity and the cost of war. Now the wealth created by the AI boom could start disappearing, too.
And Keith fears that if Washington responds by bailing out wealthy investors again, the public backlash could be enormous.
@KeithMcCullough
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— https://x.com/MarioNawfal/status/2114828162773209421
