If a Stock Market Crash Is Coming, Warren Buffett Says This Is the Smartest Move Investors Can Make
After a year of record-breaking gains, major market indexes are wobbling. The S&P 500 (SNPINDEX: ^GSPC) has fallen by nearly 2% over the last week, as of this writing, while the tech-heavy Nasdaq Composite (NASDAQINDEX: ^IXIC) is down by more than 4% in that time.
Much of the sell-off is stemming from the tech sector, with artificial intelligence (AI) spending under the microscope. Rising bond yields have driven up borrowing costs, making it more expensive for AI hyperscalers to continue building data centers and related infrastructure. If big tech companies pull back on AI spending, it could cause a ripple effect across the broader market.
At this point, it’s too soon to tell whether this volatility is a blip on the radar or the beginning of a deeper drawdown. Regardless of what’s coming, though, Warren Buffett has one tried-and-tested strategy that can set your portfolio up for success.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.