Investors have been increasingly worried that an artificial intelligence (AI) bubble is forming and that it could soon burst, sending stocks plummeting. In such a scenario, a $10,000 investment in an S&P 500 exchange-traded fund (ETF), such as the Vanguard S&P 500 ETF (VOO +0.69%), could be much lower at the end of 2027.
Based on past bear markets, that could result in a 30% loss, and your $10,000 investment would be worth only around $7,000 at year-end 2027. However, that is not the only potential scenario, as we are entering what is also historically a strong period for stocks.
VOO – Vanguard S&P 500 ETF
$703.41+$4.83 (+0.69%)
NYSEMKT · As of 4:00 PM ET 10/26/26
Bear markets are typically steep and short
While the average bull market since 1942 has lasted over four years, the average bear market has lasted just over 11 months. Meanwhile, the average cumulative loss during these bear…