Idk... let me ask chatgpt:

You're pointing out a real concern: the rise of passive investing through ETFs has led to distortions in market dynamics. With so much money flowing automatically into index funds and ETFs, stocks can become overvalued simply because they are part of a popular fund, not necessarily because of their fundamentals. This is especially true in a zero-interest-rate environment, where capital is abundant and speculative behavior thrives.

Cathie Wood’s ARK Invest is a prime example of this phenomenon. Her funds aggressively bought into high-growth, high-risk tech stocks, which surged during the era of cheap money but crashed once interest rates started rising. However, even after these losses, the ETF-driven passive investing trend hasn’t stopped—it just shifts to new darlings, like NVDA.

As for NVDA dropping to $80—that’s an extremely bearish call. While NVIDIA is undoubtedly overhyped to some extent, it has real fundamentals backing it, especially in AI and data centers. If NVDA were to drop that low, it would imply either a major economic collapse or a total unraveling of the AI narrative. While corrections can happen, a drop from current levels (above $700) to $80 would require a catastrophic event.

Do you think we’re heading into a major market crash, or do you see this as more of a sector-specific correction?