- Despite a potential tariff breakthrough, crypto and stocks remain volatile; market observers question sole reliance on macro factors for the downturn.
- Marty Party argues the Chinese Deepseek AI announcement, not tariffs/inflation, triggered market decline due to disruptive, cost-effective technology.
- Warning against index funds, Marty Party advises pivoting to AI, crypto, and energy infrastructure amidst fundamental market restructuring
As US tariffs head for a major breakthrough, crypto and stock markets continue to remain volatile. financial market. Since the tariff announcements two weeks ago, the total crypto market has dropped 26% from January highs, wiping out about $1 trillion in value. Now, as the market has somewhat stabilized, a section of market observers questions whether tariffs or inflation are the only factors contributing to the market decline.
Well-known crypto commentator Marty Party argues that the recent market disruption has not stemmed from the commonly cited macro factors. Instead, he attributes it to the Chinese DeepSeek AI announcement. He believes that breakthrough technologies, exemplified by DeepSeek, are way more cost-effective than previously thought and thus can leave a long-lasting impact on the market structures.
As a result of this technological shift, traditional financial indicators like price-to-earnings (PE) ratios and other similar fundamental analyses became redundant or no longer reliable. Secondly, he believes that the broader stock market is at the moment overvalued based on these outdated fundamentals. Marty Party also talks about investing in broad market index funds, which he feels are also losing their relevance.
Beyond Tariffs: How AI Is Reshaping Markets and Investment Strategies
He argues that these massive market restructurings are due to the advent of AI technology. Due to this, he strongly advises investors to shift their portfolios before it is too late.
Stocks are overvalued—period. The index strategy is over. The MAG 7 are being revalued. Index-based passive investment strategies will bleed off all year. You are not safe sitting in an index-based stock portfolio—you are fully exposed. Pivot before it’s too late. If you invested in AI infrastructure, crypto infrastructure, and energy infrastructure, you are prepared. Exit index strategies. You have been warned.
Meanwhile, Tensions rise between US President and Fed Chair Jerome Powell after the latter warned of an impending stagflation due to the tariff policies. If Trump removes Powell or forces the Fed to bow to political pressure, crypto may be seen as a safe haven for investors, fleeing from centralized institutions. Despite ongoing tariffs and failed rate cut hopes, the crowd’s market sentiment remains higher than average.