4 tips for investors looking to protect themselves from bursting bubbles in AI and credit

Market Bubbles and Economic Impact - Two market bubbles, particularly in AI and credit, are believed to be starting to burst, which could lead to significant economic damage similar to the aftermath of the Great Financial Crisis [1][2][6] - The US credit market is identified as a key factor in determining the extent of economic harm from these bubbles, with total credit extended to the non-financial sector reaching approximately 250% of GDP in Q1 [2][6] Investment Recommendations - Investment in hard assets, such as gold, is recommended as a core component of any portfolio, especially given its performance this year with a price increase of 53.9% year-to-date, trading around $4,110 [3][4] - Real assets, including oil and strategic metals, are also favored as defensive investment plays [5][6] - The significant capital expenditures by major tech firms, estimated at around $349 billion for AI infrastructure, are raising concerns about inflated valuations compared to similar companies in other regions, such as China [1][6]