$1 Trillion Stock Market Wipeout Has Investors Rethinking Diversification | The Gold Spot

China’s unexpected AI breakthrough shook Wall Street, exposing the market’s heavy reliance on artificial intelligence. DeepSeek’s R1 model, built on a comparatively modest budget, challenged America’s dominance in AI, triggering a $1 trillion sell-off.

The S&P 500 tumbled 3% in a day, with Nvidia alone losing $600 billion in market value. This massive drop highlighted how deeply embedded the Magnificent Seven is in AI. Furthermore, this event reinforced how overexposed the stock market is to these tech giants, who collectively make up 34% of the S&P 500.

For investors, this serves as a stark reminder of how overleveraged the market is in a single, vulnerable sector. ETFs and index funds, often seen as safe diversification tools, are overwhelmingly weighted toward these same companies, leaving retirement portfolios like IRAs, 401ks, etc., at risk.

As uncertainty grows, investors turn to physical gold, a time-tested hedge against volatility. In this week’s The Gold Spot, Scottsdale Bullion & Coin Precious Metals Advisors Brian Conneely and Todd Graf reveal the extent of the AI sell-off, why it matters for investors, and how a gold IRA could be used to protect retirement plans.

🔗 READ MORE: https://www.sbcgold.com/blog/1-trillion-stock-market-wipeout-has-investors-rethinking-diversification/?utm_source=rumble&utm_medium=video&utm_campaign=goldspot_rmbl_01292025

👉 How a Gold IRA Works – A Step-by-Step Guide: https://www.sbcgold.com/precious-metals-ira/how-a-precious-metal-ira-works/?utm_source=rumble&utm_medium=video&utm_campaign=goldspot_rmbl_01292025

📈 Gold Price Predictions & Forecasts for 2025: https://www.sbcgold.com/gold-price-forecasts/gold-price-forecast-2025/?utm_source=rumble&utm_medium=video&utm_campaign=goldspot_rmbl_01292025

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📈 See Live Gold and Silver Spot Prices:
https://www.sbcgold.com/charts/?utm_source=rumble&utm_medium=video&utm_campaign=goldspot_rmbl_01292025

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⭐ Scottsdale Bullion & Coin Precious Metals Advisors in this The Gold Spot video:

👤 Todd Graf: https://www.sbcgold.com/about/todd-graf/?utm_source=rumble&utm_medium=video&utm_campaign=goldspot_rmbl_01292025

👤 Brian Conneely: https://www.sbcgold.com/about/brian-conneely/?utm_source=rumble&utm_medium=video&utm_campaign=goldspot_rmbl_01292025