If a Stock Market Crash Is Coming, Warren Buffett Says This Is the Smartest Move to Make Right Now
As the stock market continues to soar, some investors worry a crash is on the way.
Overview
The stock market has been on an extraordinary run over the last few years. Since the bear market bottomed out on Oct. 12, 2022, the S&P 500 (SNPINDEX: ^GSPC) has risen 118% while the Nasdaq Composite (NASDAQINDEX: ^IXIC) has rocketed 165%. The Dow Jones Industrial Average (DJINDICES: ^DJI) has also surged at an impressive rate. This rally roughly started with the beginning of the generative artificial intelligence (AI) revolution following ChatGPT's public launch in November 2022.
AI has helped Nvidia become the world's most valuable company and fueled hundreds of billions of dollars in spending on data centers, semiconductors, and power infrastructure. Naturally, the enthusiasm around AI is creating uncomfortable comparisons with the dot-com bubble.
Details
What if AI is a bubble and stocks crash? Warren Buffett spent nearly 60 years offering investors answers that sound almost too simple: the smartest thing you can do is stay invested through volatility and uncertainty.
Source
Originally published at www.fool.com.