-- PORTFOLIO UPDATE --
Although our portfolio is almost flat for the month, the AI correction caused a bit of volatility. Here is my opinion and risk management strategy.
WHAT IS HAPPENING:
- Circular Transactions:
Investors and banks inject huge sums into AI startups at inflated valuations.
That money circulates among startups and large business ($NVDA $MSFT (Microsoft) etc...) buying each other's services, creating "revenues" not driven by genuine customers.
- R&D vs. Real Business:
Most AI tools remain in R&D.
Some useful products exist, but overall utility still lags behind the huge amount of money invested.
- Investor Sentiment:
Investors continues to pour money into the system through startup investments and debt financing.
Recent months saw multi-billion rounds, confirming that investor confidence is still high.
However, discontent is rising as users question the value of current AI tools, so a moderate correction is possible.
FUTURE OUTLOOK:
Long-term, AI firms cannot sustain billion-dollar raises unless customer-driven revenue grows sharply.
If utility doesn’t catch up, investors may eventually lose faith, bringing bigger corrections.
MY ACTIONS:
I remain invested into AI stock as this is a too big opportunity to miss, but given these risks, I reduced my AI exposure to manage volatility. Our investment in AI remain focused on companies who are bringing value to the healthcare sector which is the focus of my portfolio and has a more predictable outcome.
$SPX500$NSDQ100... Show More
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Tue Jan 20 2026 08:43:14 GMT+0000 (Coordinated Universal Time)
