"Undoubtedly, the broad market went into 2026 with a fairly high multiple and while this alone doesn't mean we'll spend a big chunk of the year in a bear market, I do think that some of the neglected non-AI and non-tech plays might be in a position to do well in their own right, especially if an AI bubble (if it even exists) finally does go bust, dragging down the broad stock market along with it."
"It's all right to be bullish and overweight in the top AI names, provided you're comfortable with increased volatility. But if you're at all fearful of an AI bubble or rolling sector-based corrections, I'd argue that a bit of diversification can never hurt. In this piece, we'll look at two low-tech stocks that have impressive growth rates and the means to sidestep a potential AI growth scare should one happen in 2026."
Many investors and analysts are bullish on the stock market and the AI trade heading into the new year. The broad market entered 2026 with a fairly high multiple, increasing vulnerability to corrections if an AI bubble bursts. Neglected non-AI, non-tech companies could perform well independently and act as hedges against tech-driven sell-offs. Diversifying away from concentrated AI exposure can reduce volatility risk. Shake Shack is highlighted after a more than 41% decline from its highs and offers expansion potential with a 1,500-store long-term plan. Initiatives include loyalty programs, new menu items like the Big Shack, and operational efficiencies to support earnings growth and share recovery.
Read at 24/7 Wall St.
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