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Recently, every AI company in the US stock market that releases an earnings report has crashed. It started with Microsoft. I think the recent flash crashes in all assets are due to two main factors: firstly, prices have risen significantly and become very high; secondly, capital expenditures have reached a point of return to scaling – in other words, the more they spend, the less they earn. Thirdly, a pervasive fear of AI is spreading. The fastest crashes have been seen in the US SaaS sector, and the root cause of all this is Claude AI. Coworker has reached a level that is frightening enough. Law firms and investment banks no longer need analysts. Once-respectable production workers are now less valuable than plumbers and electricians. Previously, the replacement of human labor by AI was still a topic of discussion, but facing reality so quickly will lead to a spreading nihilism: the once-advanced human race will no longer be needed, their salaries will no longer be necessary, education will fail, the unstoppable abuse of AI in universities, and the complete collapse of primary education. Children educated using traditional methods will become future waste. The elites have never explained how humans will survive after being rendered obsolete by AI. This nihilism will spread to all assets, leading to a painful period before humanity evolves to a second-tier planet. The Three-Body Problem describes a painful period in human history before the technological explosion—a great trough—where all resources were invested in developing technology to its extreme, resulting in widespread unemployment and food shortages. The world's population disappeared by 4.5 billion. This is probably the true bear market.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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