The article argues that stocks always carry risk, pointing to the 2022 bear market when the S&P 500 fell about 18% and the Nasdaq-100 about 32% on a total return basis. The author outlines three risks: heavy reliance on AI, as Goldman Sachs research from September found the largest AI hyperscalers had spent about $800 billion in capital expenditures since the start of the year; rising rates, as the Fed hiked in September and the 10-year Treasury yield has risen about 0.92% over the past year; and high valuations, with the CAPE ratio at levels not seen since 2000, just before the dot-com crash. Even so, the author says they will keep investing and buying more stocks through low-cost index funds, noting the S&P 500 has averaged 9.98% annual returns since 1928 and the Vanguard S&P 500 ETF (VOO) about 13.8% a year over the past five years, including 2022.
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S&P 500bear marketvaluationinterest ratesAI investment
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SPY
▼ Likely negativeSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/30/2026 | 755.71 |
| Change that session | -1.77% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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