Arthur Hayes: The skepticism towards DeepSeek's innovative model reflects the overvaluation of the U.S. stock market
ChainCatcher reports that Arthur Hayes expressed on his personal social media platform that many people are now questioning the innovative model of China's AI project DeepSeek. However, the more they question, the less willing they are to buy into the US market because the total market value of US stocks has reached 230% of GDP, which is historically high and exceeds 175% during the tech bubble in 2000 or 130% in 1929. He pointed out that if investors withdraw from U.S. stocks, it will lead to a decrease in capital gains tax revenue and may further expand the U.S. fiscal deficit to between 7%-10%, far exceeding previous expectations of 3%.
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