If I Could Only Buy 1 Artificial Intelligence (AI) Stock Before the Market Crashes, It Would Be This One
Artificial intelligence (AI) has been one of the biggest drivers of the stock market’s rally over the last few years. While this enthusiasm has propelled the S&P 500 to record highs, there’s a growing concern that investors may be getting ahead of themselves.
The S&P 500 Shiller CAPE ratio, which measures stock valuations against 10 years of inflation-adjusted earnings, is hovering above 41. Readings this elevated are extremely rare, raising questions about whether the market is due for a correction. After several years of exceptional returns, investors should think about what stocks they want to own if sentiment suddenly changes.
During downturns, I prefer companies with established competitive advantages, diversified revenue streams, and enough financial flexibility to keep investing while weaker competitors fall behind. This is why Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is near the top of my shopping list.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.