But the size and scope of AI's eventual role in society remains unknown, and investors should take a more cautious approach to the technology, especially as a recession looms, says, economist and portfolio strategist at New York Life Investments. Goodwin sees a recession unfolding potentially later this year as the Federal Reserve's rate hikes continue to work their way into the economy. She therefore sees a downturn in the broader stock market as likely.
Nevertheless, Goodwin still sees the value in gaining exposure to the space. In the note, she shared three tips for investing in AI stocks in a sensible way. and diversify your investment in the space across a number of stocks. "The direct winners from AI technology may not be known yet. A diversified or thematic approach is likely appropriate to give investors a potentially greater chance of success," she said."From a US value equity base, profitable tech may be an important add."
Some exchange-traded funds that offer diversified exposure to AI include the First Trust Nasdaq Artificial Intelligence and Robotics ETF (