How to invest during a market downturn: 4 experts share do's and don'ts
Global financial markets are experiencing a downturn, with semiconductor and AI-related stocks suffering the most significant losses. Major chipmakers like Micron, Sandisk, and SK Hynix have seen their share values drop by over 11% in the past week. Experts attribute the sell-off to fears of faster-than-expected US inflation, which could prompt the Federal Reserve to raise interest rates, increasing borrowing costs for companies. Additionally, investor caution in the AI sector has grown due to new competition from Chinese memory chip maker CXMT and doubts about the profitability of AI infrastructure investments. Financial advisors recommend that investors avoid buying stocks solely because their prices have fallen. They emphasize the importance of strategic decision-making over impulsive reactions to market volatility.