Michael Green is the chief strategist and portfolio manager at Simplify Asset Management, and authors the Substack called &quot;Yes I give a Fig.&quot; He joins Phil Rosen on Full Signal to discuss hidden risks of the AI boom, how passive investing is bidding up the AI bubble, why he&#x27;s bullish on new technology but cautious on its impact for investors, and more. Subscribe to Opening Bell Daily: https://www.openingbelldailynews.com/subscribe Follow Phil on X: https://x.com/philrosenn Follow Phil on LinkedIn: https://www.linkedin.com/in/philrosen/ TIMESTAMPS: 0:00 - Caution on AI bull market 2:57 - AI&#x27;s real value 5:38 - Nvidia&#x27;s vendor financing 7:47 - The China threat 9:39 - Should investors sit out? 11:29 - Passive investing risks 13:17 - Are stocks actually cheap? 15:57 - 1987 crash parallels 19:17 - Are markets broken? 24:08 - Passive flows and leverage 26:10 - Can regulators step in? 28:21 - Building a new portfolio today 32:09 - Inflation vs. deflation 36:35 - American economic opportunity 42:32 - Mike&#x27;s new book #podcast #investing #markets #macro #stocks #bitcoin #fed

Mike Green: AI is fueling another 1987 market CRASH!

Full Signal

Mike Green, you're a bit more cautious on the AI market than most of the investors I've been speaking with. Make your case here. Mike Green Well, I want to be clear. I'm very bullish on the application of the technology. I actually think that this is a true, genuine innovation. I actually was sitting and having breakfast earlier this morning listening to a young woman explain to somebody the stacks that she was building within her AI applications. And I was thinking to myself that you certainly didn't hear anything like this with crypto or really anything else. It reminds me very much of the rollout of the internet.

Mike Greenberg Which had a very profound impact, clearly formative in terms of my perspective on this stuff. But I do think that there is a very material misunderstanding between the economics that are being presented and the likely economic reality that is going to emerge. I think that there are a couple of things that are really critical to understand. One is that the adoption curves that we have seen to this point have largely been about people just seeking advice in their daily lives. They're not building broad applications. They're not revolutionizing.

Mike Greenberg The world in any material way. They're simply saying, where should I go on vacation? Which hotel should I stay at? How should I plan my trip, etc.? I like to give the example. My mother-in-law asked me to install ChatGPT on her iPad. And the very first question she asked is not, you know, how do I build a multi-factor agent to simulate my retirement flows or whatever? Instead, she actually said, how old is Julianne Moore? Right? It's a replacement for Google search. It is better than Google search.

Mike Green: AI is fueling another 1987 market CRASH!

Read the full transcript

The candid version is on a podcast,
not the earnings call.

Mike Green: AI is fueling another 1987 market CRASH!

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.