Yuichiro Chino/Getty Images
Investing veteran Bill Smead warns against putting money in the market’s largest stocks, citing similarities between the current AI craze and the dot-com bubble of the 2000s. He previously cautioned that the most popular stocks could plummet by as much as 70%. Betting on the biggest, most popular stocks in the market could be a mistake, and the boom in artificial intelligence stocks probably won’t end well for investors, according to Smead, a 40-year market veteran and the founder of Smead Capital Management. Market bulls seem unfazed by the risks, but Smead believes that investors are getting carried away by their excitement for AI, leading to a major risk of “failure” in the stock market. Despite this, investors continue to pour their cash into the Magnificent Seven stocks and ride the S&P 500 to record highs, seemingly ignoring the potential consequences of their actions.
2024-02-27 21:36:43
Original from finance.yahoo.com