Market Correction: This ETF Could Be a No-Brainer Buy if a Bear Market Is Coming
Buying this S&P 500 ETF is almost always a good idea for long-term investors.
Overview
One of the biggest debates in the investment world so far in 2026: "Is the artificial intelligence (AI) trade overpriced?" Major tech companies have been spending hundreds of billions of dollars on AI data centers and other capex, but some investors are worried that the spending won't pay off, and that AI stocks are overvalued.
On Friday, the tech-heavy Nasdaq-100 index dropped by 1.5%, driven largely by declines in semiconductor stocks. A Chinese AI start-up called Moonshot recently released a new AI model that could potentially compete with America's leading AI start-ups. As a result of these uncertainties, investors seem to be selling off chip stocks and AI stocks and rotating money into other assets.
Details
It's too soon to say that a bear market is coming for the Nasdaq-100, let alone the wider U.S. stock market. But if you're concerned about high valuations of tech stocks, the Vanguard S&P 500 ETF (NYSEMKT: VOO) might be a good buy. This is one of the most popular exchange-traded funds (ETFs) in the world. No matter what happens next with AI stocks or the overall stock market, buying this S&P 500 ETF is generally a good move for long-term investors.
Source
Originally published at www.fool.com.