This billionaire says the market may be in for a ‘breathtaking’ correction — but he’s still buying AI stocks. Here’s why
View original at finance.yahoo.com“Jones first rose to prominence after he predicted the 1987 Black Monday crash, when the Dow fell 508 points in one day (2). That day, the New York Stock Exchange lost more than $500 billion in market capitalization — the largest decline since 1914. But while investors and the media scrambled, Jones shorted the market and profited an estimated $100 million (3).”
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The share of the economy devoted to AI investment is nearly a third greater than the share devoted to internet-related investments during the dot-com bubble, implying the AI bubble risk could be worse.
60% confidenceClaude in January 2026 is the equivalent of when Microsoft came out in 1981 — marking the early stage of an AI revolution analogous to the PC era.
60% confidenceTransformative technological shifts and productivity miracles typically last four to five and a half years, and the current AI cycle is approximately 50–60% complete.
60% confidenceThe market will experience breathtaking corrections at some point during the AI cycle.
60% confidenceThe AI bull market likely has another year or two to run before a major peak or correction.
60% confidenceThe current AI moment is comparable to 1995, when commercial internet use exploded alongside the launch of Windows 95.
60% confidenceGovernments should step in with regulations on AI due to long-term risks of the technology becoming dangerous.
60% confidence
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