Hey everyone, been watching the charts lately and honestly had to get some thoughts down about what's going on in the US market right now.
Did you guys catch the story about that 24-year-old kid who started an AI hedge fund? He pulled in like 1400% returns last year and another 350% in the first half of this year.
It looked amazing on paper, but he was using 4x leverage on highly volatile AI assets. Naturally, Citadel and a bunch of other big players saw the weakness, shorted his positions into the ground, and basically liquidated the fund.
It’s crazy to me that people still play with 4x leverage when even TQQQ is risky enough. It reminds me a lot of the dot-com bubble or 2008. The big guys wait for you to over-leverage, crush the sector, force bankruptcies, and then scoop up the good assets for pennies.
History doesn't repeat perfectly, but man, it definitely rhymes.
Meanwhile, if you look at the actual big tech companies—the ones actually placing the orders for AI chips—they are printing money. Microsoft just reported their numbers and their revenue jumped 18% year-over-year.
Azure is up 43%. They even have 30 million users on Copilot now. Their stock jumped from $400 to around $466 right after because the market realized AI is actually driving real operating profit now, not just hype.
Personally, I'm done chasing the dopamine hits. We get impatient and sell solid broad-market stuff to gamble on leveraged ETFs, and that's just our lizard brain taking over.
I've been stacking QNDX lately because the 0.1% expense ratio is unbeatable for a 30-year timeframe.
Backtesting shows that if you just dollar-cost average into the market for 10+ years, you can easily grow your wealth by 6% or more annually without losing your mind. Stop letting your lizard brain force you to sell at a loss and buy the top.
Stick to the boring stuff, hold the big tech winners for the next decade, and protect your retirement.
Stay safe out there!
