Watch Desk posted an update
Michael Burry expects the Trump administration to do what it can to protect the AI investment boom, while warning that a vast financial backstop would carry “epic moral hazard”. Yahoo Finance reports that Burry made the comments on Substack.
Why it mattersValuation professor Aswath Damodaran is taking a different sort of precaution: he still holds five of the “Magnificent Seven”, but says most of his recent investment money has gone into cash and short-term Treasuries. Neither view settles whether AI spending will pay off. Together, they show the split between staying exposed to the boom and keeping some powder dry.
Discuss: Is holding cash a sensible hedge against AI’s uncertain returns, or just a costly way to miss the upside?
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