Comment on Is there any way the average American can insulate themselves from the AI bubble bursting?

cAUzapNEAGLb@lemmy.world ⁨3⁩ ⁨days⁩ ago

Hard assets make a lot of sense when paper assets do not.

Real estate and precious metals are the traditional hard assets. The stock market can implode, but a home will remain a home, an acre will remain an acre, an ounce will remain an ounce.

There are difficulties and risks and efforts required with hard assets, theres a reason why soft assets developed, but when things go wrong people trust what they can hold and walk on - and thus seek real estate and precious metals as they are certain and tangible.

With a little more trust in the system, there are softer assets available such as bonds, specifically treasury bonds, and there are etfs that attempt to exclude the ai bubble such as XMAG, or the sp500 but equally distributed instead of by market cap which increases diversity like RSP to reduce the fallout of the ai bubble pop

Theres a million ways to navigate a bubble, do the research and find confidence in your plan, and think about how you’ll react in various scenarios, especially when the numbers go down or arent going as high as expected

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