One Major Risk With Investing in Artificial Intelligence Stocks
As artificial intelligence (AI) investing picks up steam, the trend is beginning to look more and more like other bubbles that have burst. It's common to hear: "This time, it's different!" The reality is that history doesn't often repeat itself, but it does rhyme.
So if you're going to invest in AI stocks, you must be aware of the bubble risk and how to handle it should a company you invest in get caught up in the boom.
The most challenging task for many investors during a bubble is understanding when a company is executing and driving stock performance versus just expectations. Even more confusing are companies that are firing on all cylinders yet trade at such a ludicrous valuation that there is no way for the investment to make money.
Source Fool.com
