Investors Laying Groundwork to Profit Massively When Economy Collapses

Short sellers have increased bets against the US stock market to the highest level since 2010, signaling investor concern about a potential economic downturn linked to an AI-driven financial bubble. Despite significant spending on AI, revenue growth has not kept pace, raising worries about sustainability. Alphabet recently reported negative free cash flow and increased capital expenditures, exemplifying these financial pressures.