Are You Betting on the AI Boom… or the Next Big Bust?

The dot-com bubble wiped out fortunes. Will AI be any different?

In 1999, people believed the internet was the future. They were right.

They also believed that investing in any company with ".com" in its name was a guaranteed way to make millions. They were wrong.

The dot-com bubble burst, wiping out billions of dollars. Now, history may be repeating itself—with AI.

Are we witnessing a technological revolution—or another disaster waiting to happen?

The AI Mania: Genius or Madness?

Look around. AI is everywhere.

• Nvidia’s stock has doubled in less than a year.
• Tech giants are pouring hundreds of billions into AI.
• Every investor you know is chasing the next big AI stock.

Sound familiar? It should. This is exactly what happened in the dot-com boom.

The internet did change the world. But most internet stocks didn’t survive. Pets.com, Webvan, eToys—they all went to zero.

Investors made one critical mistake: confusing innovation with investment success.

What Ray Dalio Thinks—And Why You Should Pay Attention

Ray Dalio, the legendary hedge fund manager, has publicly shared concerns about today’s AI stock boom, noting that it reminds him of the late 1990s dot-com era (as reported by the Financial Times).

He’s not saying AI is a fad. It’s real. It’s revolutionary.

But Dalio warns that investors are ignoring major risks:

• AI stocks are trading at extreme valuations.
• Interest rates remain far higher than we’ve seen in over two decades, with the potential to increase further, depending on Federal Reserve policy.
• Competition is heating up—China is making big AI moves, too.

And history shows us what happens next.

What Happened in 2000? And Could It Happen Again?

Let’s rewind to 1999. The Nasdaq doubled in a year. Everyone thought tech stocks were unstoppable.

Then the bubble popped.

• The Nasdaq crashed 80% over the next two years.
• Companies once worth billions vanished overnight.
• The only survivors? A handful of companies like Amazon and Google.

Most investors lost everything because they chased hype instead of fundamentals.

How to Avoid Being the Next Victim

If AI is the future, does that mean you should go all in? Absolutely not.

Here’s how smart investors protect themselves:

? 1. Be Selective—Not Every AI Stock Will Win

AI is a long-term trend. But many companies won’t survive. Choose wisely.

? 2. Don’t Ignore Valuations

A great company can still be a terrible investment if you buy it at the wrong price.

? 3. Stay Diversified

Owning only AI stocks is like playing roulette. Spread your bets.

? 4. Watch Interest Rates Carefully

The cost of money has changed. After decades of near-zero rates, investors must adjust to a different reality. Higher borrowing costs affect businesses, valuations, and investor behavior.

? 5. Think Long-Term—Not Like a Speculator

Short-term hype creates bubbles. Long-term investing creates wealth.

Will You Be the One Who Gets It Right?

AI is real. AI is here to stay. But AI stocks? Some will soar. Most will sink.

Don’t be the investor who repeats the mistakes of 1999.

Be the one who learns from them.

If you’re serious about protecting and growing your wealth, let’s talk. I offer a complimentary strategy call to help high-income professionals make smarter decisions.

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Plan Right. Live Better.

Mateo

Disclosure: This content is for informational purposes only and should not be considered financial or investment advice. All investments carry risks, and past performance is not indicative of future results. Please consult with a fiduciary financial advisor before making investment decisions.