The AI bubble: five things you need to know to shield your finances from a crash.
A stock market crash caused by an "AI bubble" bursting could have far-reaching consequences for investors. The term "bubble" was first used by investors to describe the situation in 1929, and it refers to periods of rapid price increases followed by sharp declines. However, predicting when a bubble will burst is nearly impossible.
The concerns about an AI bubble are shared by people from both sides of the aisle. On one hand, some commentators argue that investors are overpaying for technology stocks because of misplaced expectations about future profits from artificial intelligence (AI). On the other hand, bankers at UBS predicted positive gains for AI-linked shares in 2026.
Investors can protect themselves against a potential AI bubble by having an emergency fund of three to six months' expenses. Diversifying investments across different sectors and asset classes is also recommended. For those close to retirement who are thinking about using their pension pot to buy an annuity, locking in current high valuations may be worth considering.
One reliable investment during a crash is gold, according to experts. Short-term government bonds, known as gilts, are another asset that investors should consider. Funds such as the Trojan Fund and the Royal London Short-Term Money Market Fund offer access to these assets.
Ultimately, investors need to think in terms of years, not weeks or months, when making investment decisions. It's also essential to ask yourself why you're feeling uneasy about an AI bubble – if it's because you'll need the money soon, then you might be invested too riskily for that timeframe.
A stock market crash caused by an "AI bubble" bursting could have far-reaching consequences for investors. The term "bubble" was first used by investors to describe the situation in 1929, and it refers to periods of rapid price increases followed by sharp declines. However, predicting when a bubble will burst is nearly impossible.
The concerns about an AI bubble are shared by people from both sides of the aisle. On one hand, some commentators argue that investors are overpaying for technology stocks because of misplaced expectations about future profits from artificial intelligence (AI). On the other hand, bankers at UBS predicted positive gains for AI-linked shares in 2026.
Investors can protect themselves against a potential AI bubble by having an emergency fund of three to six months' expenses. Diversifying investments across different sectors and asset classes is also recommended. For those close to retirement who are thinking about using their pension pot to buy an annuity, locking in current high valuations may be worth considering.
One reliable investment during a crash is gold, according to experts. Short-term government bonds, known as gilts, are another asset that investors should consider. Funds such as the Trojan Fund and the Royal London Short-Term Money Market Fund offer access to these assets.
Ultimately, investors need to think in terms of years, not weeks or months, when making investment decisions. It's also essential to ask yourself why you're feeling uneasy about an AI bubble – if it's because you'll need the money soon, then you might be invested too riskily for that timeframe.
AI bubble? More like a robot apocalypse... just kidding! 
But seriously, diversify your portfolio like a pro gamer 
and don't get caught in the "AI crash" 
. Build an emergency fund, invest in gold 
(just kidding, it's not that exciting), and think long-term, not short-term 
. And remember, if you're feeling anxious about the AI bubble, ask yourself: "Am I invested too heavily for a TikTok crisis?" 
AI bubble alert! I'm thinking of diversifying my portfolio ASAP 
. With tech stocks being so hot right now, it's easy to get caught up in the hype. But remember, the 1929 crash was a reality check 
. And honestly, I think we need to be thinking years ahead when it comes to investments 
. If you're feeling anxious about an AI bubble, ask yourself if you really need the cash ASAP – if so, maybe you're taking on too much risk 
.
... it reminds me of those crazy tech stocks back in the 90s 
... everyone was all about Y2K and the next big thing 
... but we knew something was up when the prices just kept going up and up without any real growth 
... my grandfather used to say, "If it sounds too good to be true, it probably is"... and I think that's exactly what's happening here 
... we need to take a step back, do some research, and not put all our eggs in one basket 
... gold and gilts are always a safe bet in my book