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Citrini Research published a long hypothetical scenario called *“The 2028 Global Intelligence Crisis.”* They describe how artificial intelligence could potentially reduce employment and create broad economic stress. They clearly stated that it was just a hypothetical scenario. Of course, many people seem to have ignored that part. The report quickly went viral. Major financial media outlets like Bloomberg and The Wall Street Journal escalated it. Markets reacted strongly. Citrini is bearish on many of the companies mentioned in the letter. Alap Shah even said in an interview:
>*"We are constantly turning our book, and we certainly have short positions in some of these businesses. We generally have shorts against businesses we think are going to be disrupted by AI."*
I’m not a legal expert and I don’t know the exact laws around this, but to me it feels close to manipulation. Don’t get me wrong. I welcome market downturns because they allow me to buy good companies at cheaper prices. I’m not complaining about that. What does concerns me is that social media or independent research firms can move markets so significantly. And it’s not only Citrini. Many other influential individuals, on platforms like X, have millions of views and followers. I understand that there is no evidence of deception or manipulation. Now knowing such a big newsletter company can disrupt markets is something to watch out for.
What also caught my attention was the fake headline from Mastercard in the report.
>***MASTERCARD Q1 2027: NET REVENUES +6% Y/Y; PURCHASE VOLUME GROWTH SLOWS TO +3.4% Y/Y FROM +5.9% PRIOR QUARTER; MANAGEMENT NOTES “AGENT-LED PRICE OPTIMIZATION” AND “PRESSURE IN DISCRETIONARY CATEGORIES” | Bloomberg, April 29 2027***
>*Mastercard and Visa dropped 9% the following day. American Express was hit the hardest and Synchrony (SYF US), Capital One (COF US) and Discover (DFS US) all fell more than 10% over the following weeks, as well.*
The above is hypothetical.
Since the publication of the letter on February the 22nd, Visa and Mastercard are down 5%, American Express -7.5%, Synchrony -3.5% and Capital One -5.5%. Even though it was hypothetical... well... just saying that a lot of people followed suit.
Peter Lynch once said:
>*"Everyone has the brainpower to be in the stock market but do you have the stomach for it? There is always something to worry about. In the 50s there was a depression and it was the best decade this century. All the companies in the world are going bankrupt..."*
He said this back in the 90s and it still valuable today. Look around, listen to the noise. Headlines screaming AI is going to take over the world, the companies and the humans. I would encourage you to read his books. He explains it in depth and in detail.
I'd like to know what your thoughts are on this?