Why This Bubble Is Different (And Why It Could Get Bigger)

This current raging bull market has all the hallmarks of the Dot-Com era. But there is one critical difference between 1999 and today - a difference that suggests this bubble could get much bigger and last much longer than we think. The AI revolution isn’t being funded by VCs hoping for an exit; it is being funded by the “Magnificent Seven” - the richest, most cash-flow-positive companies in the history of capitalism. They are the eternal spring of growth capital. The AI bubble is real. It is powerful. It is backed by unlimited capital. It could run for years. But you don’t need to bet the farm on it to have a successful retirement.

Is this 1999 all over again? It is the question every client is asking, explicitly or implicitly. They look at the chart of Nvidia. They see the frenzy around generative AI. They feel the FOMO.