The Maverick of Wall Street: We Are Entering a Time of Economic & Market Chaos

Stocks are off to an ugly start for September. The S&P 500’s 4% drop represented over $2.2 trillion. Yes, the second week of September gave a partial rebound. However, markets are usually weaker in the second half of the month.

In the meantime, some of the market narratives are starting to shift. The biggest trend in markets for nearly two years has been the rise of AI. However, many are starting to question that trend.

ChatGPT user time is dropping substantially. That could indicate that users are moving to other, proprietary AI tools. Or it could be a sign that the initial hype of AI has played out.

That doesn’t mean the AI boom is over. The internet was just getting started when the tech bubble burst in 2000, after all.

But it does mean that markets may no longer trend up in a straight line. They have so far this year and in 2023. If the trend is shifting, stocks may be more volatile.

That means investors might have more opportunity to trade market swings, rather than buy and hold. And that traders who can hedge or even short the market before a big swing lower can rack up quick profits.

With markets likely to be more volatile ahead, the game has changed. And investors need to be prepared.

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