Episode summary
Everyone Hates AI | Animal Spirits 453
Animal Spirits
· · 1 hr 17 min · Hosts: Ben Carlson, Michael Batnick
Summary
Michael Batnick and Ben Carlson spent much of the episode on the market and social reaction to a viral AI doom scenario that imagines white-collar job losses, slower spending, and a 2028 recession-style cascade. Michael was visibly shaken by parts of the piece, especially its claim that people had overestimated the value of human relationships, while Ben pushed back that real-world frictions, network effects, and the cost of running AI agents will limit how far the worst-case scenario can go. They also argued that even if the transition is painful, the economy is more dynamic than the article assumes and new work, services, and complaints will likely emerge alongside automation.
The AI discussion bled into stocks, where they framed the selloff as an overreaction but also a sign that sentiment can change fast. Michael said he was buying Microsoft, Salesforce, ServiceNow, CrowdStrike, and Blackstone, treating the weakness as a buying opportunity rather than a thesis to hide from. Ben emphasized that the macro backdrop still looks decent, even if the Magnificent 7 and software names are taking a hit.
They closed by circling back to the labor market, housing, and consumer spending. The consumer still looks resilient, but they acknowledged that if AI makes workers more anxious, it could dent risk appetite and delay buying. They also argued that housing may be an AI hedge because physical assets become more valuable in a more digital economy.
Key takeaways
- Michael argued the AI backlash is real because the best doom scenarios are plausible enough to change investor sentiment and risk appetite.
- Ben said the worst AI claims overstate how much human relationships, network effects, and real-world friction can be engineered away.
- Michael bought Microsoft, Salesforce, ServiceNow, CrowdStrike, and Blackstone into the selloff, calling it a buying opportunity rather than a reason to flee.
- The hosts said the consumer still looks stable, with retailers and lenders describing spending as resilient despite gloomy sentiment.
- They argued housing may be an AI hedge because physical assets could matter more if the economy gets more digital and rates fall.
Notable quotes
“We had overestimated the value of human relationships. Turns out that a lot of what people called relationships was simply friction with a friendly face”
“There are so many things we could do right now without human relations that we choose to do”
“I am going to buy Microsoft today. I am running into the fire”
“Consumers beliefs don't match their behaviors”
How the episode opens
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Learn more at betterment.com/advisors. Welcome to Animal Spirits with Michael and Ben. Michael, I talked to you yesterday.
You were feeling a little uh a little down, I think. Is that fair to say? Not down, just
Okay. The AI Doom is reached escape velocity and it's now a daily daily weekly occurrence where we have one of these big pieces that paints the Doom. And as a as a glass half full guy, uh I I like the other side of these, but I don't mind the AI Doom porn.
I think it's good to go through these scenarios. I don't necessarily agree with them, but I think I think it's probably healthy for people to think through what the potentially bad ramifications could be on these things.
I appreciated the craft and the effort behind the post. I thought it was incredibly well done. It comes from a Catrini research.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- ai doom scenarios
- human relationships in a digital world
- ai backlash
- weird stock market
- bitcoin software stock
Companies and tickers mentioned
- Betterment Advisor Solutions
- Blue Owl
- Bitcoin
Watch the episode
Watch “Everyone Hates AI | Animal Spirits 453” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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Animal Spirits, this episode and its artwork belong to The Compound. Octagon is not affiliated with the show; this page is an independent summary.
