Nvidia CEO Jensen Huang has stated that the decline in tech stocks should not scare anyone and that it is a time to buy at low prices. Meanwhile, in South Korea, the stock market index has lost more than fifteen percent, and the government has stepped in with emergency measures to contain panic among investors. The question is who really benefits from this advice.
Artificial intelligence as an excuse for volatility 📉
Behind Huang's optimistic speech lies a classic strategy: getting small savers to buy during the correction to prop up the value of large funds' portfolios. The narrative that the artificial intelligence boom is just beginning serves to justify any downturn as an opportunity, but data shows that the Korean market already required state intervention. When governments curb panic with public money, executives do not lose; those who assume the real risk are the citizens who enter at the wrong time.
The boss smiles, the saver foots the bill 💸
It is curious that an executive who earns millions in annual bonuses tells us not to fear losing our savings. If the downturn were such a good opportunity, one would expect executives to sell their mansions to buy more shares, but no: they prefer that ordinary people dig into their pockets while they sit back and wait. In Korea, the government intervenes to save speculators who bet big and lost; the small saver can only hope that the rescue does not arrive after they have already sold at a loss.