Exuberance in the markets is back, with a frenzy over artificial-intelligence technology driving a surge in Nvidia shares and major stock indexes hitting repeated records. Even bitcoin is on the verge of setting a new high. Financial advisers are cautioning clients against letting a fear of missing out dictate their decisions, urging them to diversify their holdings and stick with dollar-cost averaging.
Despite the market euphoria, experts believe this rally may have more room to run, as it lacks some of the classic signs of a stock-market bubble. Everyday investors are adjusting their playbooks accordingly. Jordan Buchanan, a Navy officer, opted to invest in tech stocks rather than renewing a certificate of deposit, seeing a 17% return on his portfolio this year.
Zachary Esters, a recording artist, is focusing on undervalued stocks and warns against being too greedy in one’s investments. Meanwhile, Richard Stofan, a day trader, is dabbling in more speculative stocks, including cryptocurrencies, as near-record prices for bitcoin have emboldened him to increase his exposure.
Chase Speegle, another day trader, emphasizes the importance of protecting capital and cutting losses quickly. He has learned from past experiences and is now more proactive in his trading strategies. As the market continues to hit new highs, investors are advised to be cautious and consider the potential risks involved in their investment decisions.
