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Putting cash in the market’s biggest stocks could be a big mistake, investing vet Bill Smead said.
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Smead pointed to comparisons between the current AI mania and the dot-com bubble of the 2000s.
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The most popular stocks on the market could plunge as much as 70%, he previously warned.
Betting on the biggest, most popular stocks in the market could be a mistake, and the boom in artificial intelligence stocks probably won’t end well for investors.
That’s according to Bill Smead, a 40-year market veteran and the founder of Smead Capital Management, who’s been warning that the stock market faces a major risk of “failure” as investors get carried away by their excitement for AI.
Those risks appear to be lost on market bulls, who have been plowing their cash in the Magnificent Seven stocks and riding the S&P 500 to record highs.
Investors appear to be comfortable with the…
