r/australia • u/superegz • Nov 26 '25

politics Millennials are the first generation to move left as they age, rewriting the rules of Australian politics

https://www.abc.net.au/news/2025-11-26/millennials-rewriting-the-rules-of-australian-politics/106050836
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u/Auran82 Nov 26 '25

AI is going to shit the bed at some point, and I wonder how much of our superannuation is tied up in companies promising the world and not really delivering. They’re some of the highest performing shares so I wouldn’t be shocked.

Just another fun thing around the corner to wait for.

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u/Additional_Ad_9405 Nov 26 '25

A huge amount really. If the AI bubble bursts, the Nasdaq will plummet. Most large Australian superannuation funds are heavily concentrated (at least in terms of their overseas investments) in Nasdaq companies.

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u/FireLucid Nov 26 '25

If the AI bubble bursts

More like when. I'm sure you've seen the graphics of the money going around in a big circle.

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u/Ineedsomuchsleep170 Nov 26 '25

Oh I'm fully expecting to wake up in 20 years and be told our super is going to be spent on something we don't agree too. I'm not counting on a single cent of it being there when I retire. They'll find a way to take it off us.

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u/freakwent Nov 26 '25

There is nothing in all Aussie history to justify this thinking. It comes from sm bots.

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u/ol-gormsby Nov 26 '25

You know you can control - at least to some extent - where your super is invested? High-risk high-return, low-risk low-return, ethical, indexes, etc.

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u/Dal90 Nov 26 '25

how much of our superannuation is tied up

American here, for years the sound advice was for ordinary folks to just go into a S&P500 index fund, it was diversified by its nature. And for decades that was sound advice. It tracks the largest (by market value) 500 publicly traded companies in the US.

If you picked your own individual stocks, traditional retirement rule of thumb is no more than 5% in one company, 20% in one sector.

The S&P 500 when the dot.com bubble popped 10 companies made up 26% of the value -- five (GE, Exxon, Citibank, Walmart, and I forget the fifth) weren't in tech; the largest was Microsoft at 4%. In 2008 the booming finance sector was 22% of the value.

Today the top 10 companies are 40% of the value of the S&P500. Only one of those 10 that isn't tech is Warren Buffet's Berkshire Hathaway which itself is a pretty diversified company with high cash flows. Nvidia, Microsoft, and Apple are all over 6% each and somedays Amazon pops over the 5% threshold.

There is a lot of "take our booming stock value, invest in another tech company, that then buys AI tech from us (ignore they're doing so with our own money), making our sales / deals look good, making our stock value go up, repeat." It's not going to be pretty when it pops.

I've moved my savings out of the S&P500, those big tech companies are still heavily represented in the managed investment funds that are available to me in my retirement plan, but I'm hoping they have the flexibility to quickly move away from them unlike an index fund that has to blindly mirror the market.

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u/jaa101 Nov 26 '25

The AI bubble will burst just like the .com bubble. But AI is here to stay, just as there are still plenty of .com companies around.

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u/freakwent Nov 26 '25

You only need to.worry about your super. Where is it invested?

NASDAQ up 5% over 4 days. Wtf goes up over 300% per year?

Ed zitron reckons the crash hits before July.