Nassim Taleb says there is now a "chip on the glass" with NVDA

In this interview Nassim Taleb says future drawdowns in AI could be 2 to 3 times bigger.

 

Remember, that Wall Street is a huge marketing machine selling ideas and services most people don’t actually need.

 

All the Mag 7 except Apple, have had 50% drawdowns in recent years.

Not a big deal or uncommon.

 

How many wiped out 3 months of gains in one day?

 

I think Tesla and Facebook have had >20% drops in one day on bad news.

The 17% drop yesterday made headline news because it was the single day largest market cap drop in history. But otherwise not exceptional.

 

The options market definitely thinks it is "uncommon" hence the cheap price of deep out of the money puts on NVDA.

 

End of 2022 into early 2023 the biggest tech names lost over 50%, facebook dropped below 100. Then like magic they all bounced and haven't seen those levels since.
Next drop can easily drop the nasdaq by 40%
You can constantly see how when one nasdaq heavy tech drops they compensate it for another. Notice how they propped up apple during this nvda mishap along with facebook. It's constan. They take the same stocks and constantly prop up one while the others take the hit and vice versa.

 

So then how is it dropping 40% if that will keep happening?