However: \u201cI\u2019m hesitant to use the word bubble,\u201d Lister said. \u201cThe market is definitely expensive and investors need to be mindful of that.\u201d<\/p>\n
The rally isn\u2019t solely based on hype, he said \u2013 there are some big numbers being generated by the top players. \u201cIf you look at the earnings behind Nvidia, Microsoft, Amazon and Google, the earnings are also going up and to the right. Share prices do follow earnings \u2013 that\u2019s the ultimate fundamental driver.\u201d <\/p>\n
Still, he warned investors not to forget the lessons of the dot-com boom and bust. \u201cYou can have a good business, but if you overpay for it, you turn a good business into a bad investment. That was the case back then. There\u2019s a bit of that today.\u201d<\/p>\n
While Lister isn\u2019t predicting a crash, the meteoric rise in Nvidia\u2019s share price will inevitably slow. \u201cThe US market is up about 80% in three years \u2013 Nvidia\u2019s probably up a thousand per cent. That isn\u2019t sustainable.\u201d<\/p>\n
Investment advisers always encourage people to diversify their investments, but that can be tricky at the moment, as the big tech stocks make up a huge proportion of the likes of the S&P500. \u201cEven if you buy a global fund, you\u2019re still heavily weighted to the US. People need to make sure they\u2019re not all in on the AI trade.\u201d Lister said.<\/p>\n
He suggested investors ask questions of their adviser or KiwiSaver fund manager.<\/p>\n
\u201cSay, well, how are you positioned? What are you doing to protect us against a potential bubble slash overvaluation in some of these stocks or sectors?\u201d<\/p>\n
But he also advised remaining calm. \u201cMarkets rise 75% of the time. There\u2019s always something to worry about \u2013 but if you wait until everything looks perfect, you\u2019ll be on the sidelines permanently.\u201d<\/p>\n
Listen to the full episode of The Prosperity Project<\/a> for more.<\/p>\n The podcast is hosted by Nadine Higgins, an experienced broadcaster and a financial adviser at Enable Me.<\/p>\n You can follow the podcast at iHeartRadio<\/a>, Apple Podcasts<\/a>, Spotify<\/a> or wherever you get your podcasts. New episodes are released every Monday.<\/p>\n","protected":false},"excerpt":{"rendered":"However: \u201cI\u2019m hesitant to use the word bubble,\u201d Lister said. \u201cThe market is definitely expensive and investors need…\n","protected":false},"author":2,"featured_media":125082,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[85741,365,9526,9556,363,364,27518,6726,16424,42110,2836,16186,2245,33443,9557,321,13840,225,111,139,69,3263,20586,1435,1436,643,145,1361,223,9856,1533],"class_list":["post-126672","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-2000s","tag-ai","tag-another","tag-artificial","tag-artificial-intelligence","tag-artificialintelligence","tag-asking","tag-become","tag-boom","tag-bubble","tag-burst","tag-dotcom","tag-early","tag-heading","tag-intelligence","tag-investors","tag-like","tag-market","tag-new-zealand","tag-newzealand","tag-nz","tag-project","tag-prosperity","tag-rapid","tag-rise","tag-stocks","tag-technology","tag-that","tag-the","tag-watchers","tag-will"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/126672","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=126672"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/126672\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/125082"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=126672"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=126672"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=126672"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}