If We're in an AI Bubble, History Says This Is the Best Way to Recession-Proof Your Portfolio

The article argues that if AI enthusiasm proves to be a bubble and triggers a recession or broader market sell-off, investors may be better served by a low-cost, diversified S&P 500 ETF rather than concentrating in tech-heavy AI winners. It highlights the State Street SPDR Portfolio S&P 500 ETF (SPYM) as a simple recession-resilience play because it owns 505 stocks and charges just 0.02% in expenses. The piece compares recent performance to the Nasdaq-100, noting that during the 2022 bear market the S&P 500 fell less sharply than tech-heavy indices. It emphasizes that while no strategy is truly recession-proof, broad index exposure has historically held up better through downturns and still produced solid long-term returns, including 11.26% annualized since 2005.