Doctor Doom: The real risk in the US stock market is "things like DeepSeek that are unexpected and change the way we think."
Jim Chanos stated that the biggest risk facing the U.S. market in the next 6 to 12 months will come from unpredictable events, similar to last month's situation where DeepSeek caused a loss of about $1 trillion in market value for U.S. stocks. He mentioned that there are indeed signs of a speculative bubble in the U.S. stock market, and investors need to distinguish between companies that have high valuations but are deserving of them, and those that are not worth such high valuations
Legendary short-seller Jim Chanos believes that the current risks in the U.S. stock market stem from "black swan" events and political factors.
Recently, the famous investor and legendary short-seller Jim Chanos stated in an interview with Bloomberg Television that the biggest risks facing the U.S. market in the next 6 to 12 months will come from unpredictable events, similar to last month's situation where DeepSeek caused a loss of about $1 trillion in U.S. stock market value. Chanos pointed out:
"The real risk will be sudden events like DeepSeek that change people's way of thinking, but by definition, we cannot predict exactly what they will be."
In addition to black swan events, Chanos believes that the current market is mainly influenced by political factors and expects this influence to intensify. Currently, Chanos is closely monitoring the tariff policies proposed by Trump:
"We need to continue to observe the specific changes in the next 30 to 60 days to see whether the situation will escalate or cool down."
Chanos believes that there are indeed signs of a speculative bubble in the U.S. stock market, but it has not yet reached the level seen when the S&P 500 surged 27% in 2021. Chanos emphasized that investors need to distinguish between companies that are highly valued but deserving of it and those that are not worth high valuations:
"If we cannot distinguish valuations, then capitalism collapses. You should not invest large amounts of money in companies like Enron and Theranos, but rather in companies like Amazon."
However, it is worth noting that some of Chanos's investment bets in recent years have not been as successful as his short-selling efforts 20 years ago—he shorted Tesla for five consecutive years, but Tesla's stock price soared; in 2022, he also bet against data center companies, but these companies actually became beneficiaries of the AI boom