The S&P 493 Is Screaming Recession, But Wall Street's Too Busy Chasing AI Unicorns
Okay, let's be real. The stock market's "soaring"? Give me a break. It's more like seven tech giants are partying like it's 1999 while the rest of the economy is stuck in a never-ending Tuesday. This whole "AI-driven rally" is a joke if you actually look at the numbers. The S&P 500 might be up, but the S&P 493 – you know, the other 493 companies in the index – tells a completely different story. A story of slowdowns, pullbacks, and…dare I say it…recession.
Moody’s chief economist Mark Zandi says AI is a "tailwind" but deglobalization and tariffs are "headwinds." Okay, professor, thanks for the weather report. What he really means is AI is making a few rich guys richer, while everyone else is getting screwed by trade wars and inflation.
And before you come at me with "but the stock market isn't the economy!", let's remember that the "wealth effect" is supposedly driving consumer spending. So, if the market crashes – and let's be honest, it will crash eventually – then what? Everyone suddenly stops buying overpriced coffee and starts hoarding canned goods? Maybe that's a good thing, actually.
Nvidia's stock is up, like, a gazillion percent. Palantir, Micron, Vertiv – all soaring. Meanwhile, the Russell 2000, which tracks small-cap stocks, is in the toilet. What does that tell you? It tells me that investors are betting everything on a handful of AI companies that might not even be profitable in the long run. Michael Burry, the guy who predicted the 2008 crash, is calling BS on the long-term profitability of AI. He's probably right.
It's like everyone's so obsessed with finding the next unicorn they're ignoring the fact that the stable is literally collapsing around them. The S&P 500 is becoming an "AI index," according to some "expert" at Apollo. Well, offcourse it is! And that's exactly the problem. K-shaped economy can also be found in S&P 500, says Apollo, with Magnificent 7 the winners And that's exactly the problem. Diversification? Gone. Stability? Fuggedaboutit. We're all just passengers on the Nvidia rocket, hoping it doesn't explode before we reach…wherever the hell it's going.
Speaking of experts, why do we even listen to these guys? They're always wrong anyway. It's their job to sound smart while being completely clueless, ain't it?
The article mentions small caps can't absorb higher import prices or shift supply chains. No kidding. They're small! They don't have armies of lawyers and consultants to dodge tariffs. They're just trying to survive, while the big boys are swimming in AI-generated cash.
The real kicker is the potential for a big tech correction to tank the entire economy. All this "growth" is based on rich people spending more money because their stocks are doing well. What happens when those stocks go south? Do they suddenly start clipping coupons and shopping at Dollar General? Doubtful. They'll probably just buy yachts in the Caymans and leave the rest of us holding the bag.
And tariffs! Don't even get me started on tariffs. It's like slapping a tax on everyone to protect a few favored industries. Does that actually work? I don't know. Does anyone really know?
This isn't a healthy market. It's a house of cards built on hype and cheap money. The S&P 493 is screaming recession, but Wall Street's too busy counting its AI profits to notice. And when the whole thing comes crashing down? Well, don't say I didn't warn you.
It's all smoke and mirrors, designed to distract us from the fact that the rich are getting richer and the rest of us are getting screwed.
