If everyone says AI is a bubble, then it is not a bubble at this stage.

What concerns me most about this market is that the S&P 500 is almost at an all-time high, yet so many individual stocks have already suffered massive sell-offs. Look at what’s happened to the neoclouds and other AI stocks. Even semiconductors have been hit hard. If this much damage has happened while the index has barely dropped, what happens if the broader market starts selling off? We could see some of these high-beta stocks fall another 20–30%. That’s what worries me. A lot of retail investors could struggle to recover from that. Especially those who’ve borrowed money or keep buying the dip in companies simply because they’ve fallen a lot. The main thing I’m watching is oil. Brent touched $110 last week because of the situation in the Middle East. The longer this war in Iran continues, the longer we risk keeping oil prices and inflation high. That’s what creates more uncertainty around interest rates. So investors are reacting to every negative headline. You can have a company doing everything right, but its shares still get sold off because of something happening on the other side of the world. Then we have two elections coming up. One in Israel and the midterms in America. Let’s be real, both governments want something they can point to as a win before people vote. I think that’s a sad reflection of the world we live in. People are struggling to afford the basics, but so much of politics seems to revolve around how to win the next election. My fear is what happens after the midterms. Trump won’t have another presidential election to fight. He’ll still have limits on what he can do, but I worry about what decisions he might make over those final two years without that same election pressure. Meanwhile, the companies are still delivering. Meta just grew revenue 26%. SpaceX reported revenue growth of 161%. Those results helped their shares, but they haven’t removed the uncertainty hanging over the rest of the market. I expect more strong earnings this season, but earnings alone can’t settle what’s happening in Iran or where interest rates go next. Honestly, if I were a new investor starting today, I’d probably be tempted to wait this out. Every day feels like another disaster is about to happen. But we’ve been through a lot this year, and we’ve managed to recover before. I believe we’ll recover again. I just don’t know how long it will take. It may take longer than usual. Long term, the amount of money that’s going to be spent on AI is astronomical. We’re talking about trillions of dollars. McKinsey estimates $5.2 trillion of investment in data centres by 2030 just to meet AI demand. This is one of the biggest infrastructure investments we’ve ever seen. We’re in a transition period. I believe AI is going to replace a huge amount of the work people do today, and the impact could be bigger than the internet. Just look at how quickly ChatGPT and Claude are advancing. Anthropic says that by May, Claude was already writing over 80% of the code being added to its production codebase. Before Claude Code launched in February last year, that figure was in the low single digits. Think about how much has changed in that short space of time. That’s why my long-term view on my AI investments hasn’t changed. Short term, though, I’m very concerned. But I’ve never been able to time the market consistently. I could sell today and end up buying back higher while still worrying about the same headlines. So I’m going to stay invested. I still believe in the companies I own, even if holding them through this market is exhausting.