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- 💸 Smart Money Weekly: The Great AI Correction is Here! 📉
💸 Smart Money Weekly: The Great AI Correction is Here! 📉
Issue 12 | Week of November 3 - November 8, 2025 | Est. Reading Time: 5 minutes
RASHIDA HERBERS
November 09, 2025 • Estimated Reading Time: 11 minutes
Good Morning Money Movers! ☕
Well, it finally happened. After months of defying gravity, the great AI stock boom of 2025 hit a major speed bump this week. The Nasdaq had its worst week since April, with over $820 billion in market value wiped out from AI related stocks. Bitcoin also took a hit, dipping below $100,000 for the first time since June. It was a week that reminded everyone that even the hottest trends can't go up forever!
But here's the interesting part: while tech stocks were getting hammered, the broader market held up surprisingly well. And with the government shutdown now the longest in US history, we're seeing some strange ripple effects on the economy and consumer sentiment. So grab your coffee, and let's dive into a week that proved even in a selloff, there are always opportunities to be found! 💰🎯📈
📈 Market Snapshots (Week Ending November 8, 2025)
• S&P 500: 6,729 (-1.6% for week) 📊📉
•Dow Jones: 46,987 (-0.9% for week) 📈
•Nasdaq: 23,005 (-3.0% for week) 💻📉
•Bitcoin: $101,870 (-11.0% for week) ₿📉
•Gold: $3,788/oz (+1.2% for week) 🥇
•10 Year Treasury: 3.85% (Down from 3.88%) 📉
•30 Year Mortgage: 6.25% (Down from 6.28%) 🏠
🫧 Featured: The AI Bubble?
Is This the End of the AI Boom or Just a Healthy Correction? 🤔
This week's $820 billion AI stock selloff has everyone asking the same question: is this the beginning of the end for the AI boom, or just a healthy pullback? The truth is, it's probably a little of both. The AI sector was definitely getting overvalued, and a correction was long overdue. But the underlying technology is still revolutionary, and the long term potential is undeniable.
Why it matters: The key is to separate the hype from the reality. Not every company with "AI" in its name is going to be the next Nvidia. This correction is a great opportunity to do your homework and invest in the companies that are actually building the future, not just riding the hype train. Look for companies with real products, real customers, and real profits. Those are the ones that will survive and thrive in the long run.
🤑 Fun Break! Want to see just how crazy the AI boom got? check out this infographic! https://www.visualcapitalist.com/ranked-the-worlds-50-most-valuable-companies-in-october-2025/ At its peak, Nvidia was worth more than the entire energy sector combined! It's a good reminder that even the most exciting trends can get a little out of hand. Sometimes the best investment strategy is to wait for the dust to settle before you jump in. 💨
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Your Top 5 Money Stories 📉 🤑
1. The Great AI Selloff: $820 Billion Wiped Out! 🤖📉
The AI stock party came to a screeching halt this week, with the Nasdaq dropping 3% in its worst week since April. The selloff was led by the very same AI darlings that have been driving the market all year. Nvidia dropped 7%, Oracle fell 8.8%, and Super Micro Computer plunged 23%, erasing over $820 billion in market value from the sector. The selloff was triggered by concerns about sky high valuations and a warning from Palantir that the AI boom might be getting ahead of itself.
Why it matters: If you've been feeling like you missed out on the AI boom, this might be the buying opportunity you've been waiting for! Corrections are a healthy part of any market cycle, and they allow new investors to get in at more reasonable prices. While the AI trend is far from over, this week was a good reminder that no stock goes up in a straight line. If you believe in the long term potential of AI, this pullback could be a gift. 🎁
2. Bitcoin Dips Below $100,000 ₿📉
Bitcoin also got caught in the tech selloff, falling below $100,000 for the first time since June. The cryptocurrency dropped over 11% for the week, with over $1.7 billion in liquidations in a single 24 hour period. The move shows that even as Bitcoin matures, it's still highly correlated with the broader tech market and can be subject to the same boom and bust cycles.
Why it matters: This is a classic "buy the dip" moment for long term Bitcoin believers. If you thought you missed your chance when Bitcoin was at $125,000, this is your opportunity to get in at a discount. However, if you're new to crypto, this is also a good reminder of just how volatile this asset class can be. Never invest more than you're willing to lose, and always remember that the path to crypto riches is a rollercoaster, not a rocket ship. 🎢
3. Government Shutdown Becomes Longest in US History 🏛️⏳
The government shutdown has now dragged on for 37 days, making it the longest in US history. The stalemate in Washington means we're still missing key economic data, including two consecutive jobs reports. The shutdown is also starting to weigh on consumer sentiment, which fell to near record lows this week.
Why it matters: While the market has largely ignored the shutdown so far, the longer it goes on, the more it could start to impact the real economy. If you're a federal worker or contractor, you're already feeling the pain. For everyone else, the shutdown could start to slow down everything from loan approvals to business permits. The silver lining? The shutdown makes it more likely the Fed will have to cut rates again to support the economy, which could be good news for borrowers. 💰
Gif by TheDogePound on Giphy
4. Consumer Sentiment Plunges to Near Record Lows 😟📉
Americans are feeling pretty gloomy about the economy right now. The University of Michigan's consumer sentiment survey fell to 50.3 in November, its lowest level since May and near the all time low. The ongoing government shutdown and concerns about the AI stock selloff are the main drivers of the pessimism.
Why it matters: This is a classic example of the disconnect between Wall Street and Main Street. While investors were partying for most of the year, regular people were feeling the pinch of inflation and high interest rates. Now that markets are pulling back, consumer sentiment is getting even worse. This could be a warning sign that a broader economic slowdown is on the horizon. If people stop spending because they're worried about the future, it could create a self fulfilling prophecy. Keep an eye on this one! 👀
5. Job Market Shows More Cracks 💼⚠️
While we didn't get the official jobs report this week, we did get some alternative data that suggests the labor market is weakening. ADP's private payroll report showed companies added only 42,000 jobs last month, and a report from Challenger, Gray & Christmas showed announced job cuts reached the highest level for any October in 22 years. It seems the job market is finally starting to feel the effects of the Fed's rate hikes.
Why it matters: If you've been thinking about switching jobs, now might be the time to be a little more cautious. A weakening job market means less bargaining power for workers and fewer opportunities to jump to a better paying position. On the other hand, if you're happy in your current role, this is a good time to focus on becoming indispensable. The more valuable you are to your employer, the safer your job will be in a downturn. 🛡️
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🚂 The Inspiration Station
The Power of Patience 🧘♀️
This week was a perfect example of why patience is a superpower in investing. If you panicked and sold your AI stocks on Tuesday, you missed the rebound on Friday. If you FOMO'd into Bitcoin at $125,000, you're now down over 10%. The investors who made money this week were the ones who had a plan and stuck to it, whether that meant buying the dip or just holding on for the long term.
Your move: The next time you feel the urge to panic sell or FOMO buy, take a deep breath and remember that the market always rewards patience. Building wealth is a marathon, not a sprint. The more you can tune out the short term noise and focus on your long term goals, the more successful you'll be. ✨
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💸 The Reality Check Corner
Don't Try to Catch a Falling Knife 🔪
Yes, this week's selloff could be a great buying opportunity. But that doesn't mean you should go all in on the stocks that have fallen the most. Trying to time the bottom of a correction is a dangerous game, and it's a great way to lose a lot of money.
Your reality check: A better strategy is to dollar cost average into the market. That means investing a fixed amount of money at regular intervals, regardless of what the market is doing. That way, you're buying more shares when prices are low and fewer shares when prices are high. It's a simple but powerful way to take the emotion out of investing and build wealth over time. 💪
🔥 In Case You Missed It…
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That's a Wrap! 🎬
That's a wrap for this wild week! Remember, corrections are a normal and healthy part of the market cycle. They shake out the weak hands and create opportunities for the patient and disciplined.
If you found this newsletter helpful, I would love for you to visit my website at www.rashidaherbers.com for more financial insights, resources, and tips to help you build wealth and make smarter money decisions.
See you next week!💰
-Rashida