How investors can avoid a lost decade for stocks if the tech bubble pops

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  • As the Magnificent Seven giants keep gaining, concerns of stock-market concentration are rising.

  • A bursting of the AI bubble could see a lost decade for stocks similar to the end of the dot-com boom.

  • Diversifying portfolios is key for investors to avoid losses if the bubble deflates, Richard Bernstein told Business Insider.

The artificial intelligence craze marches on, and with it, fears of growing concentration in the stock market.

Nvidia‘s smash-hit earnings for the fourth quarter added $267 billion to its market cap on Thursday, more than Netflix’s entire value and setting a record for the largest single-day gain in history.

As the Magnificent Seven wrap up their latest earnings season, it’s fair to say that the AI trade is in full swing.

Yet, with such narrow leadership, analysts have warned of an AI-driven tech bubble…

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