print-icon
print-icon
premium-contentPremium

You Don't Need DeepSeek To Tell You What Happened In 1929 & 1999...

Tyler Durden's Photo
by Tyler Durden
Tuesday, Jan 28, 2025 - 02:25 PM

Authored by Simon White, Bloomberg macro strategist,

DeepSeek’s arrival on the scene couldn’t have happened at a worse time for US stocks. Excess liquidity is falling at a pace rarely exceeded, valuations are at all-time highs, and everyone is long. Whether US tech firms’ moats are safe or not, the market has plenty of downside risk.

If we were limited to just one chart to dramatize the potential for upheaval in global markets after DeepSeek’s R1 AI model was released, it would be the one below. It shows the gulf that has opened up between US and Chinese tech shares since the pandemic.

Loading...

Want more of the news you won't get anywhere else?

Sign up now and get a curated daily recap of the most popular and important stories delivered right to your inbox.