Stock Market Bubble Talk Has Investing Pros Recommending This Strategy
The barbell strategy. It’s not a gym bro thing, but rather, it’s an increasingly common bit of investing advice from some of the market’s top strategists amid fears of an AI bubble.
It refers to an investing approach that involves investors splitting their portfolio largely between high- and low-risk assets. The idea is that one side of the portfolio can offer downside protection if the other underperforms, giving investors a way to cash in high-return, more speculative investments while hedging risk.
More strategists have been pushing the recommendation as they eye the risk of a stock bubble in the market’s highest-flying stocks.
The S&P 500 has hit record after record this year, and around half of the…