If the AI Bubble Bursts as the Dot-Com Did, History Says the QQQ Might Not Recover Until 2042
A look at what would happen if history repeats itself.
Overview
There's a lot of debate these days about whether AI is a bubble. I'm not going to argue either way. What I wanted to look at was what history says might happen if AI were a bubble that popped. If we look back at the dot-com bust, it took the Nasdaq 15 years to recover its prior peak. If history were to repeat itself, it suggests that the Invesco QQQ (NASDAQ:QQQ), an ETF that tracks the Nasdaq-100 index, wouldn't recover until 2042 if it popped within the next year.
I'm not predicting this will happen at all, as I'm bullish on AI and the Nasdaq-100. However, I still think it's a good idea to at least consider this potential scenario before allocating too much of a portfolio to one top ETF that has so much exposure to the AI megatrend.
Image source: Getty Images.
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Originally published at www.fool.com.