If the AI Bubble Bursts, the S&P 500 Could Drop 20% -- These 2 ETFs Could Protect Your Money
If you want to diversify away from tech, bonds and international dividend stocks could offer some safety.
Overview
The artificial intelligence (AI) boom is top of mind for everyone who invests in stocks. Skyrocketing share prices for semiconductor stocks and other companies that are profiting from the build-out of AI data centers have become a huge part of the U.S. stock market.
But many investors are feeling doubtful and anxious along with the exuberance of this bull market. Are AI stocks too richly valued? What if corporate spending on AI capital expenditures slows? What if AI technology doesn't deliver the hoped-for gains in productivity? What if AI is a bubble that bursts?
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Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.