Ask AI Advisor: What Should I Tell Relatives Worried About the Rumored AI Bubble?

It’s the giving season, and here at Origin we’re focusing on ways that we can give our members the tools to pay it forward. We’ve shared some strategies from our in-house Certified Financial Planners® on how to give generously and celebrate meaningfully without derailing financial goals, and now we’re putting our industry-leading AI financial advisor to work for you and your loved ones. With all the joy this time of year brings, it can also come with stress and anxiety — especially after the inflation, layoffs, tariff talk, and resulting market swings of the past few years.

So with that in mind, we turned to AI Advisor for help on some of the trickier situations you or your loved ones might be experiencing this year. Here, we’re exploring how to support those in your life who may be worried about the rumored AI bubble.

Keep this advice in mind for conversations over the next few weeks, and check out AI Advisor’s answers to other tricky topics for spending this time of year: layoffs and job searches, budgeting and spending, upcoming retirement, or expecting a baby. We also hope that this inspires you to ask AI Advisor for guidance on other financial and economic hurdles impacting you, your family or friends. 

***

What advice should I give relatives worried about their investments and the rumored AI bubble? 

AI stocks have surged to unprecedented valuations, with the market pricing in up to $19 trillion of future value —well beyond conservative estimates. While some are certainly profiting off AI, concentration risk is real and corrections happen quickly.

That being said, nobody knows when or if a correction will happen. The goal isn't predicting the future; it's ensuring your loved one’s portfolio can withstand a 20-30% tech drop without derailing their plans. 

Bubble concerns don't mean "sell everything." They mean ensuring proper diversification so volatility doesn't become catastrophic. Here’s some specific advice: 

‍Understand exposure. For a typical $100,000 portfolio, the impact depends heavily on AI concentration. Diversification makes a material difference: In a 30% AI correction scenario, a portfolio with 50% AI exposure loses $15,000, while 15% AI exposure loses just $4,500.

‍Check concentration first. If AI/tech represents more than 30% of your loved one’s portfolio, they should consider gradual rebalancing. That doesn’t mean panic selling, just trimming back to reasonable levels, and spreading across sectors. Breadth reduces vulnerability to any single sector correction.

‍Match risk to timeline. If they need this money within 3-5 years, higher concentration is riskier. If it's 10+ years out, they have time to recover from volatility.

***

AI Advisor gives realistic advice about real financial concerns you may have — or topics you want to be able to advise parents, siblings, or friends on when you meet up to celebrate this holiday season.

Ready to take control of your wealth building journey? For a limited time only, you can join Origin for just $1 for the first year. 

Or if you’re already a member, refer your friends and family, and get your next year of membership for just $1. 

Note: Investment calculations and projections are for illustrative purposes only. Market conditions change frequently. Consult a qualified financial advisor before making investment decisions.