This is more of a fun historical post - a story some may not know with a little reminder. In the 1600s, the Netherlands saw the worldâs first financial bubble: Tulip Mania. Tulips were a luxury status symbol as one of the first trading assets, and as speculation grew, their prices skyrocketed. At one point, a single bulb could cost as much as a house. But in February 1637, the bubble burst. Demand collapsed overnight, and bulbs that once traded for fortunes were suddenly worth next to nothing. Why does this matter today? Tulip Mania is often used as a metaphor for modern bubbles such as the dot-com stocks in the 2000s, crypto in 2017, meme stocks in 2021. Now the conversation has turned to AI in 2024â2025. Some worry itâs just another bubble waiting to pop. Personally, I donât see AI as a bubble â to me it's the natural progression of technology and Iâm bullish on that. Sure, itâs a little concerning that the S&P 500 is so heavily weighted toward tech, but not enough to make me shy away from investing in the sector. AI will reshape every industry. But just like tulips, not every âAI companyâ will hold its value long term. Some will become the Amazons of AI. Others will fade like petals after the bloom. The lesson for investors: trends come and go, but fundamentals last. Focus on companies with real value, not just the buzzword of the moment. That still holds true. I donât think we are in an AI bubble. Do you? $VOO$VFV
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