Is the AI boom reaching a breaking point? In this MoneyShow MoneyMasters Podcast, Larry McDonald, author of How to Listen When Markets Speak and founder of The Bear Traps Report, joins me to discuss growing cracks in the AI trade, warning signs in credit markets, and why he believes the Nasdaq could face a 20%–30% decline.
As investors continue pouring money into artificial intelligence, McDonald argues that rising financing pressures, weakening credit conditions, and extreme concentration in the S&P 500 Index (^SPX) are creating serious risks beneath the surface.
In our conversation, McDonald further explains why the bond market may be signaling trouble ahead, how companies like Nvidia Corp. (NVDA), Apple Inc. (AAPL), Meta Platforms Inc. (META), and OpenAI fit into the broader AI investment cycle, and where investors might find opportunities outside of technology.
Topics discussed include:
- Why credit markets are flashing warning signs for AI stocks
- The potential for a 20%–30% Nasdaq correction
- Financing pressures facing the AI industry
- Risks surrounding Nvidia, Apple, and S&P 500 concentration
- Why the Federal Reserve may struggle to raise interest rates
- Potential opportunities in energy, natural gas, coal, gold, and silver
- Portfolio diversification strategies for 2027
Don't forget: You can join Larry and other respected market experts at the 2027 MoneyShow/TradersEXPO Las Vegas, scheduled for Feb. 21–24, 2027, at the Paris Las Vegas resort. Discover actionable investing strategies, explore emerging market opportunities, and hear directly from leading financial experts. Register and learn more by clicking HERE.
