Is This The Best ETF to Invest In Ahead of Potential AI Bubble Burst?

We recently published Top 10 Trending Stocks and ETFs as Analyst Predicts $9 Trillion Productivity Gains Due to AI. SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is one of the top trending stocks.

Bill Baruch, founder and President of both Blue Line Capital and Blue Line Futures, said in a recent program on CNBC that he was investing in SPY. Here’s why:

“So the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) and the IJR they sold off pretty sharply on Friday. I was really surprised to not see any follow-through to start this week response against the 50-day moving average. And then we had Fed Chair Powell on Tuesday who comes in and talks about an endgame to QT. So I think right there you saw the Russell 2000 respond. And then as for the S&P we’re talking about valuations at the desk. If you look at relative valuations which 40% of the S&P is eight names. If you look at relative valuations the MAG 7 is right in the middle of the range it’s been over the last decade. So, I don’t think it’s it’s overvalued to in to some regard, but if we respond against the 50-day moving average as we have and we’re going to rally potentially, I want to make sure that that ETF slice that we have in these portfolios is now fully allocated.”

While we acknowledge the potential of SPY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.