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A bubble that knows it's a bubble
The four words that precede every crash: “This time is different.”
Ray Dalio, founder of Bridgewater Associates, told the Financial Times the current environment mirrors 1998-1999, warning that while AI will certainly transform the economy, investors are “confusing that with the investments being successful.” Investors had completely abandoned fundamental analysis in favor of pure speculation about future potential, convinced that traditional metrics like revenue, profit margins, and cash flow were obsolete in the ‘new economy. Where Railway Mania saw shopkeepers betting their life savings and dot-com drew day traders chasing quick profits, today’s AI investments flow primarily through venture funds and institutional investors.
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