(Bloomberg) -The author of Black Swan, Nassim Voucher, warns that Monday's cruel sales are in Nvidia Corp. is just a taste of what's in the pipeline for investors who piled up blindly to the Wall Street stock rally driven by AI.
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Disadvantages in the future could be two or even three times more than the 17% fall posted by Nvidia at the beginning of this week, says a voucher on the margins of what is known as Hedgerow Fund week in Miami. That fall dried up $ 589 billion from the chip maker valuation, making it the worst in market history.
“This is the beginning,” a voucher told Bloomberg News in an interview after the end of the markets on Monday. “Start an adaptation of people to reality. Because now they realize, now, he is no longer without. You have a small chip on the glass. “
The frenzied sale was triggered by sudden fears that the U.S. technology giants may not dominate the field of artificial intelligence as expected. The concerns follow the appearance of Deepseek, a Chinese AI startup that has shown a lower cost method of developing the technology.
Investors interpreted those as a threat to and relying on the demand for advanced Nvidia chips. A voucher said investors so far have focused too much on one narrative: that the company's shares would continue to rise as it maintains its AI dominance. Monday's retreat was very little given the risks in the industry, he said.
Protect accidents
A voucher, whose best -selling book explores the extreme effects of rare and unpredictable events, is also a scientific adviser for Universa Investments. That's a tail risk hedge fund, which effectively offers a form of insurance to help protect portfolios from violent market events.
The old options trader is well known on Wall Street for his dark pronunciation, not all of them have been correct. In early 2023, he said that many investors were not ready for the age of higher interest rates when assets no longer “swollen as crazy.” The US benchmark equity meter is up almost 50% since then, largely due to the frenzy for everything AI.
It is not a voucher and Universa argument that investors should run from the market, and therefore lose such earnings. Instead, they advocate allocate a slider of portfolios towards protecting from unexpected shock.