Worried About an AI Bubble in 2026? 1 Smart ETF to Buy Right Now.
Yahoo Finance·2026-01-28 11:50

Market Sentiment - Nearly one-third of investors feel pessimistic about the market's next six months, potentially due to fears of an artificial intelligence (AI) bubble [1] - Despite recent records set by the S&P 500, a market pullback is anticipated regardless of the AI industry's performance [2] Investment Strategies - Investing in ETFs can limit risk by providing diversification, which is crucial in times of market volatility [4] - The Vanguard Total Stock Market ETF (VTI) holds over 3,500 stocks, with more than one-third in the tech sector, offering protection against potential downturns in tech stocks [5] - Since its launch in 2001, VTI has achieved nearly 500% total returns, demonstrating resilience through various market crises [6] Long-term Investment Considerations - Investors should be prepared to stay in the market for at least five years to avoid locking in losses during downturns [7] - Safer investments, such as total stock market ETFs, often come with lower earning potential, highlighting the trade-off between risk and reward [8]