The real problem lies in AI market concentration

Sometimes the divisions between the optimists and the pessimists become incredibly obvious.

- Stephen Grootes

There is a yawning chasm between the two that really makes it easy to spot the two camps. I think this is happening now in international markets.

Is your money in gold or in US stocks? Both are at record highs. Last week, gold flew past $4,200 amid some predictions that it will now hit $5,000. To put that in context, it first went through $2,500 in August 2024, then a record high.

The reasons are obvious: central banks are scared about the future, the US dollar is not as credible as it was, there is heightened geopolitical risk and the freezing of Russian assets gave everyone a skrik (scare).

Then, US stocks are at record highs as well. We know why - there is a huge amount of speculation in AI. But I’ve noticed there are serious voices who are whispering and using the words “bubble” or “correction”.