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Nov 25, 2025 4:00 PM

The Bursting Of The Stock Market Bubble

“I have no idea whether or not we are in a bubble, nor does anyone else. But here is how you can protect your portfolio when the market does correct, and it will.”

There has been a lot of talk these days centering on the stock market bubble and the bursting of it. First, let me say our firm, LCM Capital Management, is not and never has been in the prognostication business. If you have read any of our previous Benzinga blogs, you would know that no one within our industry should be either since they are just market guesses, and they are usually wrong.

Second, I have no idea whether or not we are in a bubble, nor does anyone else. Only in hindsight will we possibly know this. Everyone seems to be asking about this "bubble." They even asked the CEO of Nvidia (NVDA), Jensen Huang, after their most recent earnings report, if he thought we were in an AI bubble. How should he have answered that?

What my 37 years in the business does tell me is, the best way to protect your investments and portfolio from a market "burst bubble" is to be properly diversified. And no, I am not suggesting you buy private credit or Bitcoin to accomplish this.

You might be thinking, I am already diversified, I own X number of mutual funds from different fund families and I also use several brokers/advisors. That's ...