Why I’m staying invested even at market highs
Instead of second-guessing where share prices will land, focus on the income that a portfolio can generate
THERE are warnings aplenty about the stock market’s almost unstoppable climb. Jamie Dimon, the head of JPMorgan Chase, is just one in a growing chorus of commentators who has sounded the alarm bell on a US market fall. He has warned of a serious stock-market correction that could happen within the next six months to two years.
The Bank of England has warned that the risk of a sharp market correction has increased. It noted that valuations appear stretched. It was especially concerned about artificial intelligence (AI)-focused tech firms. The bank said that it is worried that disappointing AI capability or adoption or increased competition in AI could lead the market to consider whether these companies can deliver the high earnings expected of them.
In other words, it is worried about whether an AI bubble is forming.
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