The AI Bubble Burst: Phase Two

Damir Tokic13.06K FollowersFollow5ShareSavePlay(8min)CommentsSummaryThe AI bubble burst Phase One was the burst of the credit-driven AI infrastructure bubble.The AI bubble burst Phase Two is currently unfolding; it's the AI disruption scare trade.The Phase Three will be when the AI adoption causes an increase in the unemployment rate and a recession - we are not there yet.Markets are likely to be volatile during the unfolding Phase Two; the crash comes with Phase Three. Just_Super/iStock via Getty Images The AI disruption scare trade The AI bubble burst has transitioned into Phase Two - that's the current AI disruption scare trade. The AI adoption is expected to accelerate, and AI labs are releasing apps thatThis article was written byDamir Tokic13.06K FollowersFollowCommodity Trading Adviser (CTA), member of National Futures Association. Professor of Finance, research on Global-macro issues. Editor-in-Chief, Journal of Corporate Accounting and Finance.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.