If the AI Boom Slows Down, History Says This Is the Smartest Way to Protect Your Long-Term Portfolio
The Schwab US Dividend Equity ETF is a safe all-weather investment.
Overview
The artificial intelligence (AI) market's breakneck expansion over the past few years sparked a buying frenzy in the sector's top chip and infrastructure stocks. Those soaring stocks -- including Nvidia, Broadcom, and Amazon -- propelled the S&P 500 (SNPINDEX: ^GSPC) to record highs.
According to Grand View Research, the global AI market could still expand at a 30.6% CAGR from 2026 to 2033. However, the S&P 500 also looks historically expensive at 29 times earnings, and a growing list of challenges -- including inflation, fears of rate hikes, and geopolitical conflicts -- could trigger a slowdown in AI spending and take down those top stocks.
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Originally published at www.fool.com.