The article notes the S&P 500 has gained 100% since the start of 2023, driven by investor enthusiasm for AI stocks such as Nvidia, Micron Technology and Microsoft, but worries are growing about AI overspending, higher interest rates and near-record valuations. Although the Federal Reserve held rates steady at its latest meeting, CME Group’s FedWatch tool puts the probability of a rate hike at the December meeting at 83%. The article argues that market crashes are a normal part of the cycle, so preparing early makes sense, and suggests two steps: taking a long-term view with holdings of at least five years, and buying quality stocks at reasonable or low prices during downturns.
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