Nassim Taleb Warns About Software Bankruptcies, Volatility

• The US dollar is progressively losing its status as a reserve currency, leading to increased gold storage.
• US tariff policy is erratic and regressive, discouraging investment and exacerbating inequality.
• The AI sector may see bankruptcies among pioneers, as historical patterns suggest early leaders are not always long-term winners.
• The world cannot afford another oil shock, and geopolitical instability, particularly with Iran, poses significant risks.
• Tail risks across all sectors are structurally underpriced, and current market volatility does not fully reflect these dangers.

Nassim Taleb warns that financial markets are underpricing structural risks across multiple domains. He highlights the eroding status of the US dollar as a reserve currency, the erratic nature of US tariff policy, and the potential for bankruptcies in the AI software sector. Taleb emphasizes the need for hedging against tail risks, which he believes are severely underestimated.