Update On AI Derangement Syndrome & Its Consequences

Last year's impressive stock market rally, which began on April 9 (when POTUS postponed his Liberation Day tariffs), was fueled by AI Optimism. It turned into AI Fatigue late last year and, in recent weeks, into AI Fear. Now it's AI Derangement Syndrome. For a while, AI was widely thought of as a productivity-enhancing tool. Now the worry is that it has turned into a Terminator of numerous businesses and the jobs they provide.

Software stocks have plunged since the beginning of the year because Anthropic has been using its LLM (large language models) tools to code better versions of them (chart). If code can write code, who needs coders? Who needs software companies?