If the AI Bubble Is About to Burst, 2 Things Warren Buffett Would Recommend Investors Do Right Now
How to prepare for a potential AI-led market crash.
Overview
Artificial intelligence (AI) stocks have helped lead the market higher over the past few years. While that has helped power the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) to new all-time highs, it has also left both indexes very top-heavy with leading AI stocks.
For example, eight of the S&P 500's largest holdings are tech stocks that make up more than 35% of its holdings. Most of these are top semiconductor companies and hyperscalers (owners of large data centers). It's even more dramatic for the popular Nasdaq-100, whose 10 largest holdings are tech stocks and account for nearly half its portfolio.
Former Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Details
Source
Originally published at www.fool.com.
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