The Best Bear Case on AI | Animal Spirits 478

Michael Batnick and Ben Carlson discuss the ongoing strength of the current bull market and the shifting narratives around AI investments and hyperscaler capital expenditures. They also touch on the rise of financial nihilism among young investors, the attractiveness of TIPS yields, and the absurdity of proposed NHL-themed ETFs. - The S&P 500 continues its historic bull market run with expanding profit margins and falling forward P/E ratios. - Young investors are increasingly turning to sports betting due to feelings of financial nihilism and housing market frustration. - Real yields of 3% on 20- and 30-year TIPS present a massive buying opportunity that the market is largely ignoring. - The massive AI capital expenditures by hyperscalers like Google, Microsoft, and Amazon raise concerns about future returns on investment. - Proposed ETFs tied to individual NHL franchises are criticized as gimmicky and unlikely to attract significant assets.