Dear Reader, The Federal Reserve chair recently told the press that this AI frenzy is not like the dot-com bubble for one simple reason: These companies actually have earnings. However, former hedge fund manager Larry Benedict pushed back on this argument in a recent interview. He said that there’s always a reason to justify absurd valuations: - A breakthrough technology like the internet or AI
- Customer or revenue growth
Larry pointed out that Lehman Brothers posted record profits in the years leading up to its collapse. He also pointed out here that the companies leading the AI revolution have a major financial flaw that could soon lead to their “Lehman Brothers” moment. When this flaw is exposed, it could trigger up to a 80-90% crash in any of the Mag Seven stocks. And it would be wise to not dismiss this warning as hyperbole. Larry is one of the most successful hedge fund managers of our time. From 1990 to 2010, he had a historic run without a single losing year. That means he profited through the Long-Term Capital Management bailout, the dot-com crash, the 9/11 recession, and the 2008 financial crisis. So whenever Larry steps forward with new research, smart investors always pay attention. Click here to watch his recent interview where he exposes AI firms’ major financial flaw. Regards, Lauren Wingfield
Managing Editor, The Opportunistic Trader | 
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