Apparently 80% of the stock market gains in 2025 are due to AI-related companies, but can it last?!
The stock market has even carried back up once-shunned Chinese stocks like Alibaba because of AI excitement!
Some people are suggesting that the “AI bubble” is nearing an “endgame” where companies have been physically building out data centers in the “AI race.” With Big Tech spending a lot of CapEx on AI investments, articles suggest that investors or traders are expecting lofty returns on AI gains. They could be met with disappointment if AI investments don’t yield as much dividends as many expect for these tech stocks’ high valuations.
Just like it felt like a “wait and see” kind of summer, it’s feeling the same in the fall despite the Fed cutting interest rates. This could be good for mortgage borrowers but not so great for savers who used to enjoy 4%+ interest rates.
Many economists are projecting that we’ll get another quarter point cut in late October, to go down to a Fed Funds Rate of 3.75%-4% versus the current 4%-4.25%. Some even believe we’ll get another rate cut to go down to 3.5%-3.75% in December!
Meanwhile, with the government shutdown and a lackluster economy, some people have been rushing into gold and crypto as “alternate assets,” if you can call them that.
Even if things are spooky in the stock market or economy, that shouldn’t stop you from having a Happy Halloween!
If you’re interested in learning how to take control of your finances and start becoming an investor like Warren Buffett, check out my free PDF guide.
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