Summary
Global tech stocks plunged after the launch of DeepSeek, a low-cost AI model by Chinese startup DeepSeek, sparked investor concerns over the dominance and valuation of AI giants like Nvidia.
Nvidia shares fell 17%, wiping $593 billion in market value—the largest single-day loss for any company.
The selloff impacted chipmakers, AI firms, and datacenter companies globally.
Analysts view DeepSeek’s cost-efficient model as intensifying competition, potentially challenging U.S. tech dominance.
Sure but that doesn’t help the people who trusted their pensions would be safe.
Jup. I hope that is a wake up call for fonds and private people to invest more in conservative/stable stocks and to check what their fonds are investing in. Of course not possible for everyone.
More stock diversification is the answer, not manual filtrering or a tilt towards “stable” stocks. If that does not provide a risk that is tolerable for an investor, then a lower stock allocation is the next step.
For a long time people have trusted their money in the 500 biggest US companies, but ignoring the world and ignoring smaller companies. This does not really make that much sense, but actually makes more sense if you are not an American.
Americans work in the US economy, and often invest in the US economy. Doing so makes you take on additional risk. An allocation towards the entire global stock market gives roughly 50% exposure to US stocks already.
If the US stock market takes a huge dive, then the value of your assets drop, and at the same time you have an increased risk of losing your job.