The recent surge in artificial intelligence (AI) related stocks has sparked a noticeable disconnect in the broader economic landscape, particularly affecting residential real estate—a cornerstone of American household wealth, according to veteran investor Jordi Visser. Leading AI-macro research at 22V Research, Visser, who boasts over three decades on Wall Street, pointed out that while financial assets have been buoyed by the AI boom, home prices remain stagnant, leaving American homeowners feeling excluded from the benefits generated by this technological advancement.
Visser highlighted that most household wealth is concentrated in housing rather than in the equities or infrastructures benefiting from the AI surge. This divergence has led to a growing disparity in how different economic segments are experiencing the AI rally. “The rally does not benefit everyone the same way,” he remarked, emphasizing the widening gap between sectors linked to information and computing technologies versus stagnant investments in the residential market.
Simultaneously, Visser discussed the recent selloff of Bitcoin, gold, and silver, characterizing it as a “debasement capitulation.” This term reflects a significant unwinding of a popular trade that involved maintaining long positions in these assets while betting against falling bonds. This strategy was heavily favored among wealth-management firms and pension funds but faced a shift after Federal Reserve Chair Kevin Warsh adopted a more hawkish monetary stance, subsequently strengthening the US dollar.
Despite the current turbulence in these assets, Visser believes that the foundational thesis behind their value remains intact. He cited ongoing government deficits and rising national debt as pressing issues that could significantly enhance the appeal of Bitcoin and similar assets in the long run. While Bitcoin has experienced a 0.5% decline over the last 24 hours, Visser noted that this weakness could be attributed to temporary factors including quarter-end portfolio rebalancing and heightened short-selling activity.
Interestingly, retail sentiment surrounding Bitcoin has shifted back to a neutral stance from a previously bearish outlook, with discussions about the asset remaining at normal levels on platforms like Stocktwits. Visser remains optimistic about the future of cryptocurrency, linking its anticipated rebound to developments in AI agents and the tokenization of various assets. He referred to this period as crypto’s “third wave,” characterized by the potential to transform illiquid assets, including real estate, into more tradable entities. Tokenization could reduce the reliance on intermediaries and reshape overall economic activities.
Visser is steadfast in his belief that the underlying conditions supporting this transformative potential are contingent upon the ongoing advancements in AI adoption. However, recent market fluctuations have indeed tested the resolve of investors. For instance, Bitcoin’s recent decline has resulted in a significant change for the average BlackRock IBIT investor, shifting their status from a 30% gain to facing a 40% loss. This downward pressure on strategy has intensified scrutiny, especially with ongoing class-action investigations and bankruptcy warnings from critics like Peter Schiff. The interplay of these dynamics continues to fuel discussions on the future growth of crypto markets and their role in the economy.
