If a Stock Market Crash Is Coming, 100 Years of History Says This Is the Best Move Investors Can Make
Market volatility could be looming. Here's how to protect your investments.
Overview
Stock prices are continuing to balloon, with major market indexes continuing to set records. The S&P 500 (SNPINDEX: ^GSPC) surged by more than 14% over the last three months -- its strongest quarter since 2020.
Much of this growth is fueled by the tech sector. Breakout stars such as Micron Technology have boosted major indexes, and the "Magnificent Seven" -- which includes Apple, Amazon, Alphabet, Microsoft, Meta Platforms, Nvidia, and Tesla -- have collectively earned total returns of around 132% over the last three years.
Details
However, all of this growth also comes with a drawback. Major indexes are becoming increasingly concentrated in tech stocks, and if these companies face a pullback, it could drag down the entire market. With concerns growing about AI spending, it may be time to start preparing for a potential downturn.
Source
Originally published at www.fool.com.