This all looks like a bubble… or does it? The market is a strange place where “common sense” can get you into a lot of trouble. There is no doubt that the market has had a tremendous run in a short period of time, but in my opinion, “bubble” talk is being driven by anchoring bias and the fact that most missed the opportunities. In the stock market, anchoring bias is when investors fixate on an earlier price, valuation, or opinion and fail to adjust properly as new market information comes in. For many who were already hesitant to pivot to AI stocks, or simply missed the move due to legitimate war concerns, the human instinct is to look back at where things were just a few weeks ago and say that moves in stocks like ARM, AMD, and others are a bubble because it doesn’t “make sense” to see a
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