If you buy AI stocks now, it could take over a decade for them to live up to their hype and price.
Amazon’s (AMZN) stock history provides a valuable lesson. James Bianco shared these excellent insights with Erik Townsend on last week’s MacroVoices podcast:
If you bought AMZN in late 1999 at the high point, you paid $100.
By the fall of 2001, it was at $6.
It fell 94%.
By 2010, it was still only at $95.
It took you 11 years just to break even.
Over the next 10 years, AMZN went from $100 to $3300. It 33x’d and finally lived up to its hype.
So, if you buy Nvidia (NVDA) and all these AI stocks now, in 23 years, you might be doing very well.
But first, you could lose half or 3/4 of your money and be down for nearly a decade. And then you might start to see some return.
The point is that you’ve got to be aware of what happened with internet stocks in 2000.
The internet fulfilled its promise over the next 20 years.
But those stocks did nothing for a decade and cost you a lot of money.
Yes, AI has the potential of giving us all the hype that everybody thinks—over many years.
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