A legendary investor, hailed as a bubble prophet, has issued a stark warning that US stock valuations, fueled by the artificial intelligence investment boom, have climbed to historic highs, surpassing even the dot-com bubble era, and face the risk of a historic decline. The market observer noted that current sentiment is extremely euphoric, with valuations of some tech giants reflecting irrational exuberance, while speculative assets like Bitcoin lack intrinsic value and may gradually disappear over the coming decades.

In terms of the ratio of total stock market capitalization to Gross Domestic Product, the US market has reached record expensive levels. Adjusted data shows this ratio is approximately 235%, meaning the total market cap exceeds twice the size of the US economy. Years ago, investment figures warned that approaching 200% indicated a danger zone, and the current figure clearly exceeds this warning line. While the exact timing of a bubble burst cannot be predicted, the market is likely near the top region. This investor previously pointed out that the long-term investment outlook for US stocks was among the worst in history; although stocks continued to rise subsequently, accumulating risks cannot be ignored.

Regarding the recently spotlighted Space Exploration Technology Company, its valuation of around $2 trillion is seen as a significant signal of market frenzy. Historical experience suggests that after the dot-com bubble burst, some leading companies saw stock prices plummet but eventually became winners. However, the current high valuation itself may be a hallmark phenomenon of the market peaking. When future historians look back at this period, they might view the company's listing as one of the most iconic market tops. Capital is flowing heavily into the tech sector, signs of overinvestment are becoming obvious, and investors need to be wary of a potential significant correction.

Beyond stock market risks, Bitcoin has also faced fierce criticism. In this investor's view, it is a useless and purely speculative asset, lacking support from intrinsic value or real-world utility. It is not a stable store of value, having dropped significantly without reason even when the economy was strong, making it unreliable for preserving value. In contrast, gold achieved considerable returns even after falling from highs. Currently, Bitcoin prices remain significantly below previous highs, and market participants believe adjustments may continue. Since people do not use it for serious business transactions or daily consumption, its true utility may be limited to specific fund transfers. Over time, such assets may not collapse dramatically but rather quietly fade into obscurity.