In recent months, there’s been a growing sense of unease among some investors around the pace of growth in the technology and artificial intelligence (AI) sectors. With headlines warning of an “AI bubble” and comparisons being made to the dot-com era, it’s entirely natural to feel concerned about what this might mean for your portfolio.
We’ve had a number of clients reach out to ask whether this surge in market enthusiasm is sustainable, and what they should be doing to protect their investments.
So, is this a bubble – or is it something else?
It’s true that parts of the market, particularly around AI and certain tech stocks, have seen rapid valuation increases. This is often driven by high expectations and excitement around future innovation. While this kind of momentum can create short-term volatility, it’s important to distinguish between speculation and long-term value.
Some companies are certainly riding the wave of AI hype without strong fundamentals to support their valuations. But others are well-established businesses that are generating real revenue and leading genuine technological advancement. The key is being able to tell the difference.
Putting short-term noise into perspective
Market cycles are normal. Periods of enthusiasm can be followed by corrections – but history shows us that staying invested through these cycles tends to reward disciplined investors over time. Reacting to speculation can often do more harm than good, especially if decisions are driven by fear rather than sound planning.
Rather than focusing on what might happen next week or next quarter, we encourage our clients to zoom out and look at the bigger picture. Investing should always be aligned with your long-term goals, not short-term headlines.
Planning with purpose
At Fogwill & Jones, we believe in building resilient, diversified portfolios that are designed to weather periods of uncertainty. If you’re worried about exposure to the tech sector or want to better understand how emerging trends like AI could impact your strategy, it’s a good time to revisit your plan.
More importantly, it’s a time to speak with someone who can help you cut through the noise, understand what’s really at play, and respond in a way that reflects your goals, not market speculation.
Let’s talk about what matters to you
If recent headlines have left you feeling uncertain about your investments or unsure how to respond, we’re here to help. Our advisers can offer calm, clear guidance tailored to your situation – helping you make informed decisions with confidence.
Book a conversation with one of our advisors today to discuss your concerns and explore how to stay on track, no matter what the markets are doing.