Hi Guys
- Need some tips I am a new investor here:
A. Should I spread my investments among the M7 ?
B. AI is really under lot of stress as NVIDIA is down even despite good earnings. What alternative sectors can I choose.
C. US market is correcting now & should go for individual stocks or vests.
For point A, Don’t go all in blindly. Some of them (like NVIDIA) are already overextended, while others (like Tesla) are struggling. Consider weighting them based on valuation and growth potential rather than equal allocation.
For your B part, Alternatives to AI Stocks
- Energy: Oil & Gas (XOM, CVX) or renewables (ENPH, PLUG).
- Healthcare & Pharma: AI boom will drive biotech innovation (LLY, REGN).
- Consumer Staples & Defense: Safer plays in correction times (KO, LMT, RTX).
- Infrastructure & Industrials: As rates stabilize, companies like CAT & DE could benefit.
For C, Since the market is correcting, dollar-cost averaging is a safer approach. Can stick to Vests as you are a new investor and don’t want to spend much time researching. If you’re comfortable analyzing companies, individual stocks can offer higher growth.