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Summary
- The unfolding KOSPI crash points to the AI bubble burst, which is likely to accelerate due to speculation with heavy leverage.
- The Nasdaq 100 is almost perfectly correlated with KOSPI; both are heavily concentrated in semiconductor stocks, thus both reflect the AI bubble burst.
- Falling token prices point to an imminent cut in AI capex, and this is the fundamental justification for the AI bubble burst.
Athitat Shinagowin/iStock via Getty Images
The KOSPI Crash and the AI Bubble Burst
The South Korean stock market index KOSPI ( EWY) has been in the center of attention lately. After nearly a parabolic move higher this year by rising
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Commodity Trading Adviser (CTA), member of National Futures Association. Professor of Finance, research on Global-macro issues. Editor-in-Chief, Journal of Corporate Accounting and Finance.
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