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By Mark Seed, myownadvisor
Special to Financial Independence Hub
Is an AI Bubble inevitable? That was the subject of Ben Carlson’s post of late.
In that post:
“There’s the old saying that those who fail to study history are doomed to repeat it. You could also make the case that those who live and die by the past are doomed to be overconfident in their forecasts about the future.”
Which is why we’ve seen this drill before and I believe there is a three-step plan to consider on that, as outlined in my post from December.
From that post here are my core ideas:
- Cut back on dividend reinvestment plans/DRIPs. Why??? In doing so, you are instantly raising your cash/cash equivalents pile for near-term spending in case things tank.
- Trim individual stock holdings. Why??? While holding individual stocks can be amazing for income and growth, I know from experience they also expose me to some concentration risks: company or sector risks. So, to avoid that, I can trim individual holdings and simply index invest when in doubt.
- Hold more cash. Why??? Aligned to #1, we did this prior to retirement, in that in case markets collapse we have cash to spend and should they continue to run higher, well, we’ll just have more money to spend for the travel we are now enjoying in retirement…
Readers, tell me, what’s your take on market bubbles, speculation on market bubbles or like me, really don’t care too much??
Mark Seed is a passionate DIY investor who lives in Ottawa. He invests in Canadian and U.S. dividend paying stocks and low-cost Exchange Traded Funds on his quest to own a $1 million portfolio for an early retirement. You can follow Mark’s insights and perspectives on investing, and much more, by visiting My Own Advisor. This blog originally appeared on his site on June 6, 2026 and is republished on Findependence Hub with his permission
