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The stock market isn't based on the present state of the world, it's based on future expectations of earnings. So no, the current state of the world hasn't chan

The stock market isn't based on the present state of the world, it's based on future expectations of earnings. So no, the current state of the world hasn't changed much in the past 6-12 months but clearly perceptions of the future have.

JumpinJack_Cash 3y ago
JD Rockefeller first signed off the oil revolution, then he got rich. Henry Ford first signed off the Model T and then got rich. I could go on, we used to reward practical improvment in quality of life, not just expectations . The thing about rewarding people for creating expectations is that false dawns can be natural (and they do happen), but they can also be manufactured artificially to get rich. And also quite frankly Chat-GPT is being developed in the wealthiest area in the world where everybody hangs out together in one giant Fed fueled party. If this was something as revolutionary as the wheel like many commentators said, surely the movement would have preceded the unveil not the other way around.
- danielmarkbruce 3y ago
  It's got nothing to do with rewarding anyone. People are buying nvda because they think the company is worth a lot because future earnings are going to be much higher than today because demand for their products will be extremely high. They expect many dollars to flow back into their pockets from such purchases. They aren't trying to line Jensen's pockets, they are trying to line their own. There is nothing wrong with that logic. NVDA are extremely well placed with their chips and cuda. Demand is high. It doesn't appear to be going anywhere but up. Their competitive position is good. Maybe the price is too high, but it's not anything even approaching a meme stock. There are real fundamentals behind that valuation.
- wefarrell 3y ago
  Rockefeller and Ford both raised significant investments before their companies practically improved quality of life and irrational speculation is as old as the stock market itself. For example during the rise of Standard Oil 1880s there was a massive speculative bubble in railroads that led to a collapse during the 1890s. Bringing up those examples without considering the failures is survivorship bias.
- CamperBob2 3y ago
  And also quite frankly Chat-GPT is being developed in the wealthiest area in the world AI may not lead to a promising future, but a blind insistence on viewing everything through the lenses of class and history definitely won't. If this was something as revolutionary as the wheel like many commentators said, surely the movement would have preceded the unveil not the other way around. What does that even mean?

JumpinJack_Cash 3y ago

JD Rockefeller first signed off the oil revolution, then he got rich. Henry Ford first signed off the Model T and then got rich. I could go on, we used to reward practical improvment in quality of life, not just expectations . The thing about rewarding people for creating expectations is that false dawns can be natural (and they do happen), but they can also be manufactured artificially to get rich. And also quite frankly Chat-GPT is being developed in the wealthiest area in the world where everybody hangs out together in one giant Fed fueled party. If this was something as revolutionary as the wheel like many commentators said, surely the movement would have preceded the unveil not the other way around.

danielmarkbruce 3y ago
It's got nothing to do with rewarding anyone. People are buying nvda because they think the company is worth a lot because future earnings are going to be much higher than today because demand for their products will be extremely high. They expect many dollars to flow back into their pockets from such purchases. They aren't trying to line Jensen's pockets, they are trying to line their own. There is nothing wrong with that logic. NVDA are extremely well placed with their chips and cuda. Demand is high. It doesn't appear to be going anywhere but up. Their competitive position is good. Maybe the price is too high, but it's not anything even approaching a meme stock. There are real fundamentals behind that valuation.
wefarrell 3y ago
Rockefeller and Ford both raised significant investments before their companies practically improved quality of life and irrational speculation is as old as the stock market itself. For example during the rise of Standard Oil 1880s there was a massive speculative bubble in railroads that led to a collapse during the 1890s. Bringing up those examples without considering the failures is survivorship bias.
CamperBob2 3y ago
And also quite frankly Chat-GPT is being developed in the wealthiest area in the world AI may not lead to a promising future, but a blind insistence on viewing everything through the lenses of class and history definitely won't. If this was something as revolutionary as the wheel like many commentators said, surely the movement would have preceded the unveil not the other way around. What does that even mean?