1 Unstoppable ETF I'm Buying Hand Over Fist During the Next Bear Market

Key Points:

• Experts warn a bear market may occur soon, as the S&P 500’s Shiller P/E ratio is at a historically high level of 40.89, the highest since the dot-com boom, despite only four years passing since the last bear market in 2022.
• Bear markets, defined as a 20% or more drop from recent highs, present prime buying opportunities, as emphasized by Warren Buffett, who advocates purchasing quality stocks when prices are depressed.
• The VanEck Semiconductor ETF (SMH), focused on leading chipmakers like Nvidia, Taiwan Semiconductor, and AMD, is recommended as a strategic buy during the next bear market due to the sector’s expected growth driven by AI development.
• Although SMH has shown strong long-term performance with an average annualized return near 28% since its 2011 inception, it is highly volatile and should be held as part of a diversified portfolio alongside ETFs offering downside protection.
• Investors are advised to limit their exposure to aggressive growth ETFs like SMH, using bear markets as opportunities to add shares while maintaining a balanced investment strategy.