Move over, FOMO. The latest buzzword on Wall Street is FOGO — the fear of going under. And it's not hard to see why. Elliott Investment Management, a hedge fund that oversees roughly $80 billion, has warned that today's debt-fueled market boom looks a lot like the run-up to the 1929 crash that triggered the Great Depression. That's a stark comparison, and Elliott isn't alone in sounding the alarm.
Why the 1929 comparison?
Elliott's warning centers on a familiar cocktail: a growing U.S. budget deficit, persistent inflation, and a frenzy around artificial intelligence. Add in the private credit firms that are funding much of the AI boom, and you have a recipe that, in Elliott's view, mirrors the speculative excess of the late 1920s. Back then, easy credit and rampant speculation in stocks led to a catastrophic collapse. Today, the worry is that debt-fueled investments in AI and other high-growth areas could unwind just as painfully.
Other big asset managers — including PIMCO, Bain Capital, Oaktree, and Capital Group — have recently voiced similar concerns. The shift in sentiment is palpable: investors are moving from chasing gains to dodging losses. That's a significant change in mindset after years of riding the tech wave.
What's happening in the markets?
The numbers tell the story. The tech-heavy Nasdaq fell 5.3% in October, its worst month since March 2025. But investors aren't abandoning stocks altogether. Instead, they're rotating out of tech and into other sectors. One reason: many investment managers are contractually required to stay invested in U.S. stocks, so they can't just sit on cash.
Look at the equal-weight version of the S&P 500. It gives each company an identical 0.2% weighting, meaning tech makes up only about 17% of the index. That index is up around 5% over the past month. Meanwhile, the standard, size-weighted S&P 500 — where tech has a 38% allocation — is down 2% over the same period. That's a clear sign that investors are spreading their bets.
What it means for everyday investors
For years, the simplest way to profit from U.S. stocks was to buy the biggest tech names and let them run. But no party lasts forever. Diversifying beyond tech can help cushion the blow when the sector stumbles. Equal-weight funds, for example, give you more exposure to healthcare, consumer staples, and energy — sectors that have been the best performers over the last three months.
That's why some analysts have been adding equal-weight S&P 500 ETFs to their portfolios, as a way to transition away from flashy tech stocks. The Invesco S&P 500 Equal Weight ETF (and its UCITS version for non-U.S. investors) has risen modestly since, enough to soften the recent market turmoil. It's not a guarantee against losses, but it's a way to hedge your bets.
For context, the broader market is also watching other developments. U.S. financial stocks have slipped as investors eye midterm election risks, and consumer confidence ticked up in November but remains below the optimism line. These are all pieces of a complex picture.
Cyberattacks: a growing threat
Meanwhile, a different kind of risk is escalating: cyberattacks. AI is helping hackers find and exploit vulnerabilities faster than ever, and the latest high-profile incidents have put everyone on edge.
On Monday, suspected hackers targeted supermarket refrigeration systems across Europe — in Ireland, Sweden, Estonia, and Belgium — forcing stores to throw out large amounts of spoiled food. Last Thursday, crypto exchange Binance lost a record $6.3 billion in a heist that the FBI blamed on North Korea. These are just the latest in a wave of attacks that has governments and financial institutions bracing for what the UK's cybersecurity chief called an "unprecedented" threat.
Why cyber risk matters for your money
The risk isn't limited to one industry or one region. Hackers will go wherever a door's been left open — whether it leads to a freezer or a crypto wallet. Bank bosses at a summit in Hong Kong this week echoed that sentiment. UBS's CEO said fending off hackers could matter more than traditional banking risks. Barclays' head called cybersecurity the top risk for big institutions. State Street's boss urged firms to team up to tackle the issue.
For investors, this is a double-edged sword. On one hand, cyber threats are growing, which means the demand for online protection is rising. That's why some analysts have put together baskets of cybersecurity stocks. One such basket has beaten the S&P 500 by almost 50% since its inception in March 2025. If an unprecedented wave of cyberattacks is indeed coming, the companies working to fend them off could see serious growth.
On the other hand, cyberattacks can directly hit your portfolio if you hold stocks in affected companies or use platforms that get breached. It's a reminder to keep your own digital defenses strong — and to consider how cyber risk fits into your investment strategy.
For more on the broader market moves, check out the AI-driven market boom and its 1929 comparisons, and the surge in cyberattacks worldwide.
