If a Stock Market Crash Is Coming, Warren Buffett Says Investors Should Make This 1 Move Right Now
It may be wise to start preparing your portfolio for volatility.
Overview
The stock market has been making a powerful rebound over the past couple of weeks. Both the S&P 500 (SNPINDEX: ^GSPC) and Dow Jones Industrial Average (DJINDICES: ^DJI) reached new record highs, while the Nasdaq Composite (NASDAQINDEX: ^IXIC) has climbed by over 9% since late July, as of this writing.
However, that doesn't mean that a pullback is off the table. Experts say that an AI bubble is the leading tail risk facing the market right now, according to Bank of America's latest Global Fund Manager Survey, with 45% of fund managers raising concerns.
Details
Warren Buffett's own favored market metric -- nicknamed the Buffett indicator -- is also sounding the alarm. It measures the relationship between the total value of U.S. stocks and GDP, and in Buffett's own words, investors are "playing with fire" when it nears 200%. As of this writing, it's at a record high of just over 232%.
Source
Originally published at www.fool.com.