Investors are Using the Same Tool as ‘The Big Short’ Guys to Hedge Against an AI Bubble

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If you remember the film “The Big Short” (or, more likely, get served 60-second clips of it regularly on YouTube Shorts), then you’ll probably remember the term “credit default swap.” It’s the tool that Michael Burry—who, notably, is currently shorting some major tech stocks—and others used to bet against the housing market. That same tool is becoming a popular hedge against the AI boom, according to a report from the Financial Times.

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Investors are Using the Same Tool as ‘The Big Short’ Guys to Hedge Against an AI Bubble



If you remember the film “The Big Short” (or, more likely, get served 60-second clips of it regularly on YouTube Shorts), then you’ll probably remember the term “credit default swap.” It’s the tool that Michael Burry—who, notably, is currently shorting some major tech stocks—and others used to bet against the housing market. That same tool is becoming a popular hedge against the AI boom, according to a report from the Financial Times.

Purchase of these insurance policies…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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