AI Bubble & SpaceX: 17x Bigger Than Dot Com | George Noble

**George Noble** (0:00)
Hi, everyone, JJ here. Welcome back. Well, today, I want to return to someone who I've featured on here before. We saw the fallout from the capital market. We saw the fallout from the capital market. We saw the fallout from the capital market. We saw the fallout from the capital market. We saw the fallout from the capital market.

**John Johnston** (0:22)
We saw the fallout from the capital market. We saw the fallout from the capital market. Today, I want to return to someone who I've featured on here before, George Noble, who's given an interview on Bloomberg. Now, he has a fund manager, been managing money for a long time, decades. Once had, I think, the number one fund in the US, Fidelity, working with, working for Peter Lynch. We know who that is, a famous investor. And he's been warning of this AI bubble, which he says is similar to the.com bubble, or it rhymes, it's repeating. Now, I've been featuring a number of investors, well-known investors, who have been saying the same thing. And people will say, well, if everybody's saying there's a bubble, is it actually a bubble? But there aren't, not everybody's saying that. Like I'm posting things on forums, retail investor forums, and there's definitely not consensus about this. It just might seem so, because I'm featuring a lot of people on my pod like that. And this is not investment advice, and I'm very serious about that. I mean it. A lot of people on YouTube in particular, you know, give recommendations for stocks. I'm not giving investment advice. I'm just showing, you know, what people are saying here, different experience people. I do think it's a bubble, but I'm not giving any recommendations or anything of the sort about what to do about that. Just, I think it's good to see various opinions. And there's a lot out there that say the opposite. Let's just say that with this really, has it mania, euphoria, this market excitement that's going on about AI, that it'll go on forever. And George Noble is saying that this is like the.com bubble. So let's get into it and I'll react to some of it.

**George Noble** (2:04)
There's really nothing new under the sun and that's because human nature doesn't change. The characters change, the names change, but it's fear and greed. We can go back to the South Sea bubble, Dutch Tulip Bulb Mania.
History repeats itself over and over again.

**John Johnston** (2:17)
Okay, I've brought up the South Sea bubble before. That was a big one in history. Tulip's the one that I think everybody knows about. If you actually read into that, it wasn't as massive as thought, but I think it was one of the first probably. The South Sea bubble, Mississippi as well. It wasn't actually in Mississippi, it was just called that. Same with the South Sea bubble. These were both in Europe, but these were massive bubbles in history. So as he said, it's been going on for a very long time. Hundreds of years of markets.

**SPEAKER_3** (2:44)
Put AI into that context here, because people have been positioning AI.
Other than electricity, there's been nothing more important than AI. How do you think about just this whole concept writ large?

**George Noble** (2:57)
I'm not bearish on AI per se. I'm sure we're all going to use it. Many of us are using it already. The question is, what's the ROI on the AI? It starts out, the way these bubbles all start, there's a kernel of truth. It captures the imagination of the individual, whether it's a South Sea bubble, or it's Dutch tulip bulbs, or its.com, which I've lived through.
It starts out as a good idea, but what happens is the price changes immeasurably. The best definition, I've actually heard of a bubble. There are many definitions. The best one I've heard is something that changes human behavior, that people do things that they wouldn't do otherwise, whether it's because of FOMO, fear of missing out or otherwise. I think that's kind of where we are with AI. I'm happy to change my mind, but show me the money. Where's the ROI?
I don't see it coming either.

**John Johnston** (3:48)
Where's the return on investment? He says, show me the money. When he said there the definitions of a bubble, and there are definitely different definitions. Somebody said to me online that the definition of a bubble, as I said, is that everybody is a consensus, that there isn't one. So when people are saying that there is one, you know, that there are some bears left, there's a saying, when the last bear is shot on Wall Street, is when you have to worry. So there are people warning about it. But I don't think that's actually true. Back in the.com bubble, there were people warning of a bubble. It's commonly thought that there was nobody saying there was a bubble, but that just wasn't true.