Periodic reminder about short-sellers and market bubbles:

1/ Short-sellers make their money sniffing out fraud and similar problems in publicly-traded companies.

2/ A bubble's collapse isn't the problem; the bubble is the problem. (There's a reason a collapse is also known as a "correction.")

In market/bubble terminology, the "correction" refers to the price of an asset returning to reality.

That's because the hype and excitement behind a bubble push prices into fantasy-land and, well, a fantasy can only last so long.

Something to keep in mind over the coming months as you read about short-sellers and AI.