I see this as a potential buying opportunity, but not a reason to rush in. The key question is whether AI spending eventually translates into stronger revenue, margins and free cash flow. If earnings continue to justify the investment while valuations reset, quality technology stocks become more attractive.
I would prefer staying invested and adding gradually rather than using inverse ETFs as a long-term hedge. Inverse ETFs can be useful tactically, but daily rebalancing and volatility can make them difficult to hold for extended periods.
I am watching semiconductor earnings, AI capex guidance, Treasury yields and free-cash-flow trends. If earnings estimates start falling alongside continued high AI spending, I would become more cautious. Otherwise, a valuation-driven correction could ultimately create better entry points.
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