r/investing
Alternatives to S&P500? Foreign investments?
Fearing an AI-driven crash like the dot-com bubble, the author seeks safer alternative investments yielding 4.5-7% to protect retirement.
- S&P 500 is overrepresented by overvalued AI companies.
- An AI-driven crash could cause a 16-year market recovery like the dot-com bubble.
With the S&P500 now being overrepresented by AI-involved companies like meta Amazon Tesla and so forth what are safer alternative investments options while we weather out the incoming financial crash due to the irresponsible overvaluation in AI? I’m entering my 30s so I’d like alternatives that will return 4.5-7% realistically annually.
obviously I have a lot of time on my hands still but if it’s like the dotcom crash in 2000, it will take 16 years before the market recovers… that’s a long time to regain all my loss. Hundreds of thousands of dollars worth probably. I could do HYSA or bonds but the ROI is <4% a yr which is too low and risk free for my age bracket. I only will do this if there are no alternatives.
Anthropic and OpenAI are still set to IPO this year too so maybe there’s more money to make, but just looking at the SpacX numbers…. It’s way overvalued and the market will correct itself sooner or later. I don’t want to continue risking my nest eggs especially my retirement account IRA.
Note: I am not asking for financial advice. I want to hear others strategies for the coming storm or if you do know alternative investments options, I’d like to specifically know about them so I can then determine if that’s right for me down the line.