If a Bear Market Is Coming, 2 Stocks You Don't Want to Own -- and 1 You Do
If the AI-fueled rally reverses, some high-flying stocks could fall hard. Here are two to avoid.
Overview
It's been a wild ride for investors this year. After falling more than 7% in the first four months, the S&P 500 is up nearly 20% in the months since. As is usually the case, the ride for the tech-heavy Nasdaq Composite has been even more jarring: down more than 10% through April and now up nearly 25% from that low.
Given all that's happening in the world, some investors are nervous that the recent run will reverse. If this happens, and a bear market -- a 20% drop in the stock market -- is coming, here are two stocks I think will fall much further, and one that will fare far better than most of the market.
Details
Before we get into the specifics, let me set this up. To my mind, the most likely scenario that leads to a bear market (or something worse) would center around major issues in the AI industry that have been driving the market higher for years now.
Source
Originally published at www.fool.com.