5 Ways to Prepare for AI’s ‘Tower of Terror’ Moment
Editor’s Note: Market volatility can be scary – much like a rollercoaster ride. As we weather the ups and downs, it can sometimes be difficult to decipher when a pocket of opportunity presents itself, especially during the drops.
Today, my InvestorPlace colleague Louis Navellier is joining us to discuss how the recent market panic has overshadowed strong AI earnings and growth outlooks. He’ll share the five steps you can take to protect your portfolio.
Take it away, Louis…
In 1994, Disney’s Hollywood Studios in Florida opened one of its most ambitious rides yet:
The Tower of Terror.
True to its name, the giant elevator ride took audiences on a tour through a towering hotel inspired by The Twilight Zone. Mind-bending stories… haunted tales…. eerie music…
And once riders reached the 13th floor, the elevator would suddenly stop… then plummet back down the shaft.
“Tower of Terror” is a fitting description of markets today.
Unlike roller coasters, where you can usually see what’s coming, the Disney Tower ride gives little indication of the sudden drop about to happen. It’s designed to be unusually terrifying.
And here’s the most interesting thing:
While the elevator ride drops as fast as 39 miles per hour, it doesn’t fall very far. Only six stories are actually used as the shaft’s “fall height,” and special illusions are used to fool people into thinking things are worse than they seem.
So, riders never drop as far as it feels, and they never hit the ground.
Sound familiar?
It certainly feels like we’ve been on our own terrifying ride in the market here lately. Thanks largely to the “tit for tat” game of tariffs playing out between President Trump and other nations on the world stage, investors are growing concerned about inflation, slowing growth… even the dreaded R-word (recession) is coming up in some discussions.
As a result, the markets have been in seesaw mode. The S&P 500 set a new record high on February 19. But after that, the overall stock market was in a seemingly downward spiral.
Then, last week, the stock market broke a four-week losing streak. Things got off on a positive note this week, as major indices were all broadly higher on Monday and Tuesday, only for things to turn south on Wednesday as a new round of tariff threats emerged.
Today, I want to focus on how this all feels for investors right now – and the five steps to take to protect your portfolio.
https://investorplace.com/smartmoney/2025/03/prepare-for-ai-tower-of-terror/