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Famous scholar, risk manager and author of bestselling books “The Black Swan,” “Antifragile,” “Skin in The Game” and others, Nassim Nicolas Taleb, has shared his take on the current state of the financial markets and the future of artificial intelligence (AI) companies from investors’ point of view.
This week, Taleb made an appearance on Bloomberg TV where he discussed these important subjects.
The renowned “Black Swan” author believes that currently the markets are becoming very fragile. While gold is growing in price, Taleb said that he does not count on gold in this situation but he prefers to be focused on being “hedged against the eventual market collapse.”
Nassim Taleb, Black Swan author and Universa Investments distinguished scientific advisor, says the markets are very "fragile" https://t.co/1sDbxUIefS pic.twitter.com/x7nYWPXf4r
— Bloomberg TV (@BloombergTV) October 11, 2024
The markets currently are “more fragile than over the last twenty years,” he said, “if not thirty years.” He underscored this again: “We are very fragile.”
As for the S&P 500 rally that the market has seen over the past 12 months, Taleb continued, it is attributable to a very small number of firms that are working with AI.
“Now, AI is probably gonna be the best investment,” the financial expert stated. However, it may be not within these firms that he mentioned above. Taleb has likened AI to the world wide web, stating that first everyone used the Alta Vista search engine, one of the pioneers back then, but later everybody switched to Google.
As for the massive market drawdown this year, Taleb commented that such crashes come when people expect them the least and are overexposed to the market. “We are in a very similar environment we had in the previous collapses,” he added.