Everyone's panicking about AI. Here's what I'm doing.
Ditch the earn-more, spend-more trap
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Yesterday, a client messaged me at 11pm.
"Sjoerd, should I pull my money out? Everyone says AI stocks are about to crash."
I get it. When you're watching your portfolio swing by thousands each day and tech layoffs dominate the headlines, doing nothing feels wrong.
But here's what nobody's telling you about the coming AI crash.
You're being played
Three things are making smart people stupid right now:
First, the recycled revenue trick. AI companies are buying from each other. It's musical chairs with billions. Looks brilliant on paper until the music stops.
Second, the productivity myth. Companies are burning cash on AI tools. Quick question: how many AI tools has your company rolled out that you actually use daily?
Third, everyone's convinced "this time is different." Same story we heard with crypto. With dot-coms. With tulips.
The experts are right.
This bubble will pop.
And that's exactly why I'm doing nothing
Actually, that's not true. I am doing something.
I'm holding on to my 100% equity funds.
While I am setting up this business, I'm investing in the business.
If I wasn't, I would continue to buy like I always had.
Pension first, ETFs second.
Because trying to time this crash means being right twice.
Once when you sell. Again when you buy back in.
Let me show you the maths that changed my mind.
The COVID lesson nobody learned
March 2020. Markets crashed 34% in five weeks.
The bottom? March 23rd. If you sold during the panic and waited even one week to buy back, you missed a 20% rally.
The next 12 months delivered 75% returns from that bottom. The investors who sold in fear locked in their losses.
Here's the kicker: crashes rarely come from what we're watching.
Nobody predicted COVID, 9/11, the Ukraine war, or the 2008 housing crisis.
The AI bubble might pop. Or it might run for another five years whilst you sit on the sidelines watching everyone else get rich.
Your only real move
Buy and hold.
When markets go up, you're winning. Your money grows.
When markets crash, you're winning. You're buying quality assets at discount prices.
The only way to lose?
Panic.
Because here's what I know after coaching 280+ tech professionals: the people who panic never build wealth.
The people who stick to their boring, systematic plan do.
That client who messaged me at 11pm? We ran his numbers. His systematic investing plan beats market timing 94% of the time over any 10-year period.
He's sleeping better now.
I always picture this chart showing the S&P 500 growth over the last 30 years.
There is not one moment where buying and holding would not have made you a lot of money.
S&P 500 last 30 years
Your next step
Quick update before I sign off: I won't have any coaching spots opening this month.
I'm fully booked working with Salesforce employees who are using their Education Reimbursement budget before year-end. (Smart move - it's free money for professional development that most people leave on the table.)
But I am running something on 20th November that you'll want to know about.
A workshop on investing: Investing 101
November 20th at 20.00
€149
Only 30 spots
That is it for this weekend. We have some halloween sweets to power through over here!
I hope you'll have an amazing weekend!
To your financial freedom,
Sjoerd
P.S. Still convinced you can time the market?
Reply with your prediction for when AI crashes. I'll check back in 12 months. Winner gets bragging rights. Loser admits markets are unpredictable. Deal?
Sjoerd Bak
Become a Millionaire Ltd
www.bamillionaire.com
