Key Takeaways
- AI fears are rising, with diversification remaining essential.
- ETFs simplify diversification while enhancing tax efficiency.
- Passive, long-term investing with ETFs helps avoid emotional investing.
The S&P 500 fell about 1.3% last week, as February’s AI-related volatility weighed on markets. Still, the index showed signs of stabilization on Tuesday, finishing the session up about 0.14%. However, even if markets eventually recover from the current bout of volatility and uncertainty, the need for diversification does not diminish.
The so-called “AI scare” trade shows little sign of fading anytime soon. According to a recent fund manager survey by Bank of America, as quoted on Bloomberg and cited by Yahoo Finance, a record share of investors believe companies are overspending on AI. Approximately…
