There’s a lot of “AI bubble” hype right now. A lot of investors are SURE that the entire stock market / economy is being propped up by over-exuberance in the AI tech of a very small number of huge tech giants. They believe when the bottom falls out the market is going to experience a dramatic crash. That could very well be true.

But here’s the problem. The market is where it is today based on a BALANCE between those who think it should be lower and those who think it should be higher. On the OTHER side of that tug of rope are the optimists who think (among other things) this AI tech is going to be so incredibly transformative that the market will scream much HIGHER once the technology matures. They think buying now is a huge discount and they’re happily to get in early before the market goes up even more.

WHO IS RIGHT? Nobody knows.

But I do know this. A crash is definitely coming. A crash is ALWAYS coming. That’s part of investing. In exchange for accepting the risk of short term volatility (that’s what people often call “crashes”) you get much higher long term returns. The problem, of course, is we don’t know WHEN a crash is coming, how BIG it will be, or when it will END. No one knows this.

So what do you do? Here’s the good news: It’s really easy. You do nothing. Don’t try to be tricky. Don’t jump in and out. Don’t do some complex analysis to make some sophisticated moves. Instead, focus on consistency. Keep buying shares. Plan to hold for decades and beyond. That’s what’s going to make you the most rich.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Jeremy