Advisors Recommend These Stocks To Hedge Against AI Bust

Benzinga

AI stocks now make up 44% of the S&P 500’s value, heightening portfolio risk, JPMorgan says. Analysts suggest equal-weighted ETFs, healthcare plays, and gold—forecast to hit $5,000 by 2026—as safer diversification options.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02JPMorgan data show that a basket of 30 AI stocks now cuts for 44% of the S&P 500's value,

00:09leaving portfolios exposed to tech swings, according to the Wall Street Journal.

00:12Well, the line CEO Robert Konzo recommends equal-weighted ETFs

00:16to reduce the dominance of AI stocks by giving each company equal influence in the index.

00:21The iShares S&P 500 Equal Weight Index, UCITS ETF, and Invesco S&P 500 Equal Weight ETF

00:27are both up over 8% this year, though they lag in the S&P 500's 15% gain.

00:32Healthier stocks up 3.9% this month are another refuge,

00:36led by Johnson & Johnson's 34% year-to-date gain and Eli Lilly's 4.8% rise.

00:41Analysts also point to international markets, which drew $50 billion in inflows

00:45and outperformed U.S. indexes into software firms like Procore and ServiceTitan

00:50as stable tech alternatives.

00:52Gold remains a standout, trading above $4,000 per ounce,

00:55with Yardini Research forecasting $5,000 by 2026.

00:59For all things money, visit Benzinga.com.

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