The Mag7 are the 7 giant tech companies currently propped up by the AI bubble. These companies represent upwards of 34% of the marketcap of the S&P500. The other 493 companies are also intimately tied to the success of AI and/or the Mag7. Not just everyone’s retirement accounts, but a huge amount of the world is invested in the US S&P500 thinking they’re diversified across 500 successful companies.
So to be clear, yes, we’re absolutely poised for a worldwide economic recession. I wouldn’t be surprised if smaller nations who rely on USD are completely bankrupted, but one thing is for certain: when AI pops, the fallout will not be limited to the US.
The Mag7 are the 7 giant tech companies currently propped up by the AI bubble. These companies represent upwards of 34% of the marketcap of the S&P500. The other 493 companies are also intimately tied to the success of AI and/or the Mag7. Not just everyone’s retirement accounts, but a huge amount of the world is invested in the US S&P500 thinking they’re diversified across 500 successful companies.
So to be clear, yes, we’re absolutely poised for a worldwide economic recession. I wouldn’t be surprised if smaller nations who rely on USD are completely bankrupted, but one thing is for certain: when AI pops, the fallout will not be limited to the US.