Investors are becoming cautious as the AI stock rally shows signs of slowing, with many major tech stocks, except Apple, underperforming over the past three years. To mitigate risks in a volatile market, it's recommended to pivot towards high-quality stocks or ETFs that focus on companies with strong balance sheets and cash flow.
To protect your investments amid increasing market volatility and potential exhaustion of the AI rally, consider reallocating towards high-quality stocks with robust cash flow and resilient business models. A practical approach is investing in the Invesco S&P 500 Quality ETF (SPHQ), which offers a diversified portfolio across tech, industrials, and financials, providing both growth exposure and defensive positioning against downturns.