If the $1.3 Trillion Chip Stock Sell-Off Was a Warning for the S&P 500, History Repeatedly Suggests 1 Move to Avoid
There's no way to time a bear market, but there are strategies to help avoid panic selling.
Overview
Semiconductor and artificial intelligence (AI) stocks seem to be getting a break from a particularly rough sell-off recently. From July 24 to July 28, based on FactSet data shared by CNBC, 20 of the world's most valuable chip stocks lost $1.3 trillion.
Two faces of the AI stock trade, Nvidia and Micron Technology, lost $238 billion and $113 billion in value, respectively, during that time. Trading for the S&P 500 (SNPINDEX: ^GSPC) wasn't entirely unaffected by the sell-off in the chip sector, but it held up relatively well compared to some of the losses of tech-heavy indexes. That said, if the recent routing of the chip sector was an early warning that trouble is brewing that could seep into the broader markets, history repeatedly suggests there's one move to avoid.
Image source: Getty Images.
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Originally published at www.fool.com.
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