Investing in AI: Sensible Ways to Put Your Money in the Growing Sector Despite Uncertainty

Investors are rushing to buy AI stocks, with some expecting AI to revolutionize the global economy and boost profit margins. However, Lauren Goodwin, economist and portfolio strategist at New York Life Investments, suggests investors take a more cautious approach to the technology. Goodwin sees a recession unfolding later this year due to the Federal Reserve‘s rate hikes working their way into the economy, making a downturn in the broader stock market likely. Therefore, investors should consider investing in diversified AI technology, quality companies with strong cash flows, and industries that AI will rely on to scale up. This could include funds like the Global X Data Center REITs & Digital Infrastructure ETF (VPN) and the WisdomTree Cloud Computing Fund (WCLD). As the size and scope of AI‘s eventual role in society is unknown, investors should continue to invest sensibly in order to mitigate risk during uncertain times.