For anyone in the market and worried about things like this, what do you think of SPXT? The expense ratio is terrible but it tracks S&P without the IT sector included, which should insulate it from the circular financing arrangements that helped balloon valuations like this.
For reference, SPX composition is normally 30-40% IT sector (because of rules driving which stock and how much of it gets included), and many of those companies are involved in these AI investments.
Me too. Banking/finance is the one I’m most worried about. Value stocks and international stocks are both valid for an overall portfolio strategy, but they don’t fill the same large cap criteria that the SPX covers.
Even total market funds are heavily invested into AI, so it requires breaking investments out into the composition you’re after, sans AI.