AI Bubble Hedge: Explore Inverse ETFs or NVDA/QQQ Puts
There's significant discussion about a perceived 'AI bubble' and strategies to short or hedge against a potential downturn. While timing a market top is notoriously difficult and risky ('The market can stay irrational longer than you can stay solvent'), several instruments are suggested for a bearish stance or portfolio protection. Investors could consider purchasing inverse ETFs such as SQQQ, which shorts the Nasdaq 100, for broad tech exposure. Alternatively, buying long-dated put options on key AI stocks like NVDA or the broader tech-heavy QQQ ETF could be explored. For a more conservative hedging approach, shifting a portion of capital into safe-haven assets like short-term treasury ETFs (e.g., SGOV) is also mentioned. Extreme caution and appropriate position sizing are paramount given the inherent risks of betting against strong market trends.