Shock & Awe Yeah; Futureproofing
If someone brought to me a business plan to sell homegrown fish that were raised in a pool at the end of a hydroponic garden, but the pool was the size of a fishtank, I wouldn't invest. The AI bubble is the same, except the fishtank has a leak. The AI bubble is worse.
The bottom line is money, and the momentum of the USA economy is less discretionary money for an expanding portion of consumers. Who will buy those sweet red roses? "Business is flush with cash," you say? How long?
Robots? Competition has caused robots to drop in price. One million robots sold for $1000 is $1 billion. Not $1 trillion. It would take over four billion robots sold at $1000 to equal NVDA market cap. Chips are a component of that $1000. "NVidia valuation if for data centers," you say? To serve who? Businesses selling ads? To who? The 1%?
Do you see the math problem?
So, let's consider two challenges coming. 1. AI bubble bursts. I have NVDA and INTC as short targets. 2. Japan carry trade unwind. I have TM as a safety hedge.
So, my plan is to use gains from price declines in NVDA and INTC using put options to buy call options and shares in TM. The further upside is that TM has growth potential in its core business and as a Japan company it has stock price growth potential from a hyperinflated dollar.
Thoughts?
[link] [comments]
Popular Products
-
Orthopedic Shock Pads For Arch Support$71.56$35.78 -
Remote Control Fart Machine$80.80$40.78 -
Adjustable Pet Safety Car Seat Belt$57.56$28.78 -
Adjustable Dog Nail File Board$179.56$89.78 -
Bloody Zombie Latex Mask For Halloween$123.56$61.78