Worried About A Drop In Tech Stocks? How To Play Defense With Your Portfolio.
As the AI trade encounters a speed bump, experts advise investors not to panic and to instead focus on fundamentals. The Nasdaq Composite slid 1.7% on Tuesday as AI jitters sent tech stocks falling.Have tech stocks flown too close to the sun?Recent market action has investors grappling with what to do when the artificial-intelligence trade carrying the entire market encounters a hiccup.Major U.S. stock indexes opened lower on Tuesday and continued to stumble into the afternoon, with the tech-heavy Nasdaq Composite COMP leading losses and sliding 1.7%. Meanwhile, Wall Street's "fear gauge," the Cboe Volatility Index VIX, jumped 10% to 18.9.First, the bad news: A correction could just be getting started. "AI growth is enormous and there'll be periods when the market has to digest the spend, capital expenditures and the number of players in the space," Michael Sansoterra, chief investment officer at Silvant Capital Management, told MarketWatch."This is actually still pretty small," Sansot