Which is why people who actually look at trends tend to compare it more to the Dot-com bubble.
The short version? A few early internet adopting sites (like Amazon…) set up online retail presences. People were ecstatic because you could now do most of the monthly shopping online and even re-buy pants that you know will fit and so forth.
Seeing money, EVERYBODY made an online retailer or service website and EVERYONE wanted to invest in that.
Then the market was oversaturated and companies with no right to exist went bankrupt and it was a bloodbath.
Except… not really. Because while the massively overinflated stock market did indeed “downturn” and a LOT of those scam companies went away, the actual fundamental premise of online first companies was a very sound one. I mean… just look at “Cyber Monday” and so forth.
And “AI” will almost definitely go the same route. Because, yeah, LLMs are HORRIBLE for accounting and finance. But they are actually really good for replacing the early career folk who translate earnings into reports. And ML in general is excellent at detecting patterns which can mean potentially billions of dollars in investing. But, like all things, it is about verification and caution. You actually need a human to read that earnings report before you send it to the investors. And you only give your “AI” a small portion of your portfolio. Same as with any team.
Which is why people who actually look at trends tend to compare it more to the Dot-com bubble.
The short version? A few early internet adopting sites (like Amazon…) set up online retail presences. People were ecstatic because you could now do most of the monthly shopping online and even re-buy pants that you know will fit and so forth.
Seeing money, EVERYBODY made an online retailer or service website and EVERYONE wanted to invest in that.
Then the market was oversaturated and companies with no right to exist went bankrupt and it was a bloodbath.
Except… not really. Because while the massively overinflated stock market did indeed “downturn” and a LOT of those scam companies went away, the actual fundamental premise of online first companies was a very sound one. I mean… just look at “Cyber Monday” and so forth.
And “AI” will almost definitely go the same route. Because, yeah, LLMs are HORRIBLE for accounting and finance. But they are actually really good for replacing the early career folk who translate earnings into reports. And ML in general is excellent at detecting patterns which can mean potentially billions of dollars in investing. But, like all things, it is about verification and caution. You actually need a human to read that earnings report before you send it to the investors. And you only give your “AI” a small portion of your portfolio. Same as with any team.