When former Pentagon advisor Jim Rickard’s released this AI Black Paper, he warned that the brewing crisis in AI would cause:“A multi-trillion dollar stock market drawdown that will catch millions of Americans off guard….torching their stock portfolios, retirement accounts, and even personal savings faster than any crisis we’ve seen before.”
Well, now with problems at Nvidia and ChatGPT, it looks like he may have undersold the case.
Because according to Rickards, thanks to an announcement set to take place 24 hours from now, the entire “AI illusion” that’s been propping up the market since the launch of ChatGPT is about to be incinerated virtually overnight. And it could lead to one of the biggest “Dow Drops” in history.
According to Rickards, a market crash of 30%, 40%, even 80% or more is not out of the question.
Now, it seems like prominent voices on Wall Street are beginning to agree:Research firm Macro Strategy Partnership is warning that “The AI Bubble is now 17 times the size of the dotcom bubble and 4 times the size of subprime.” Chair of Investment Strategy at JP Morgan: “Three-quarters of gains in the S&P 500 since the launch of ChatGPT came from AI-related stocks.”Oliver Wyman, one of the highest rated financial consulting firms in the country issued an even more dire warning, saying: “an AI-led market collapse would wipe out approximately $33 trillion of value — more than US GDP.” But Jim Rickards has singled out a date – July 29th.
