Jeff Guo

And I'm Jeff Guo.

Today on the show, are we in a bubble right now?

Is it even possible to tell if you're in a bubble?

And if you are in a bubble, what does that mean for the rest of the economy?

Now, the textbook definition of a bubble is that it's when people start buying and selling something at prices way above what it's actually worth.

When the price is so high, it just doesn't make any sense at all.

It's something where you're like, why are people paying so much money for this thing?

That's a bubble.

That's a bubble.

And with a bubble, that price just keeps going up and up and up until one day it pops.

The price comes crashing down to reality and a lot of people lose their money or lose their jobs.

Yeah, it's pretty hard to get irrationally exuberant about ankle socks.

Whereas AI, on the other hand, AI is new and exciting and no one really knows how big of a deal it's going to be.

There's all this uncertainty.

And that uncertainty also makes it genuinely hard to tell if we're in a bubble or not.

Right now, investors think NVIDIA is worth $4.6 trillion.

That is 22 Disneys or five JP Morgan chases.

Economists call it a bubble when the delusional narratives have taken over the market.

And economists have come up with all kinds of theories about why investors might be a little delusional or over-optimistic.

But it's really hard to tell when the market is being delusional when you're in the moment.