Hello everyone! Today I’m going to talk about an important topic. It has been widely discussed in the financial newspapers recently. I’m going to explain and summarize everything and how it might impact your ISA portfolio and what to do next.
As per usual this is not financial advice, if you’re unsure about anything seek professional advice from a regulated financial advisor.
Many participants have warned against a potential AI bubble in the stock markets. It means that the stock markets, especially in the US, have performed really well, too well, and they might come down soon.
In this article you’ll find the right ETF to watch for.
If you’re invested in the S&P 500 through an ETF, it’s worth noting that only 7 companies accounts for 31% of the total fund. It’s a lot of concentration.
These 7 companies massively invested in AI infrastructure and therefore fuelled investors optimism. A bubble means the stock markets have been overly optimistic, and what might happen next is a sharp decline in the stock markets.
Here’s what to do next:
- Keep calm, relax and stay invested.
- Search for S&P 500 ETF Equal Weight.
- Trade and enjoy yourself.
In this case we have removed the risk concentration. It means your money is equally invested in 500 companies.
The idea is to stay invested by reducing the impact of a potential AI bubble.
That’s all for today and I hope my insight was useful. I hope you enjoy reading this post.
Cactus Personal Finance 
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