Rising fears of an AI apocalypse have rattled markets and forced investors to reckon with a potentially existential risk.
A future where robots take over and terminate humans remains a radical vision, fueled by recent warnings from AI researchers who consider doomsday a possible, but very unlikely, scenario.
Yet it’s worth asking how people can protect their wealth from AI Armageddon. We reached out to several investing and personal finance gurus for guidance, and here’s what they said:
Neil Wilson, investor strategist at Saxo UK
Wilson said he’s confident that if a catastrophe comes, then “gold is going to be the one asset class that will endure.”
Cybersecurity stocks could be the “best defense” in the meantime, he said, as they stand to benefit from the events that would likely precede an AI apocalypse, such as Anthropic’s recent warning that AI developers should slow down to allow risk prevention to catch up.
“So even if we don’t get the meltdown, we get enough worry and enough of a reaction to boost defenses,” Wilson said.
If there is a market meltdown, he continued, the best bets might be “miners, real estate, gold, plus things like defense and of course booze and cigarettes as we’ll all need something to keep us from going insane!”
John Longo, author, portfolio manager, and finance professor
Longo championed core investing principles such as having a diversified portfolio both across and within asset classes to avoid dangerous concentration, setting aside some cash, and limiting leverage.
The Rutgers professor said that for mitigating AI doomsday risks, “traditional safe-haven assets” such as gold, US Treasurys, and Swiss francs might be worth a look.
Longo added that within equities, “software security stocks and defense stocks may attract investor attention.”
Susannah Streeter, chief investment strategist at Wealth Club
Worried investors shouldn’t “scramble for a single financial life raft” but instead limit their exposure to an AI disaster, Streeter said. That could mean paring their bets on the biggest US tech stocks, maintaining a “sensible cash buffer,” and “spreading investments across regions, sectors and asset classes.”
She added that gold can be a “useful hedge in periods of severe market stress,” but crypto is unlikely to “provide much shelter from an AI-induced storm” given its historical volatility when investors are “running for cover.”
Streeter cautioned against “trying to jump overboard altogether,” as investors could miss out on gains if everything turns out OK. She said that “diversification and keeping sight of the longer horizon may prove more valuable than trying to time a hasty exit.”
Ipek Ozkardeskaya, senior analyst at Swissquote Bank
If disaster strikes, government bonds, gold, real estate funds, and high-quality, defensive stocks are likely to be investors’ best bets, Ozkardeskaya said.
For stock investors, “rotating to companies with strong earnings, low leverage, and sufficient free cash flow would be a no-brainer,” she said, adding that “defensive names would become sexy.”
Sarah Coles, head of personal finance at AJ Bell
Coles warned against overstating the threat of AI ending the world, as it remains “completely theoretical” and “safeguards” will likely be put in place to stop it.
But she said those worried could stockpile long-lasting food and household essentials such as toilet paper, in case there’s a “catastrophic global collapse” or they can’t leave their homes for health reasons.
She also said people might “keep a small sum of money somewhere safe at home, in case there are any interruptions to their access to cash.” But she advised against stashing away a large amount of cash as it could be stolen or damaged.
“It’s important not to panic at news like this and make major changes that could damage your finances if life continues as normal,” she said. “However, there’s nothing to be lost in taking a handful of smaller steps.”
Kristin Pugh, a private wealth manager at Creative Planning
“If we’re truly talking about a catastrophic AI scenario, there are no borders, and there are no languages, and money may not mean very much,” Pugh said.
She said that debating between cash, gold, or stocks doesn’t seem “particularly useful” in that scenario, as all of those assets depend on “functioning human systems.”
“This would be a species-level problem,” Pugh said. “So I would focus on the asset that matters most in that scenario: our relationships with other humans — our families, our neighbors, and our communities.”
She said that her goal would be gathering her loved ones and reminding each other why humanity is worth preserving: “our connection to one another and our freedom to choose how we live and how we connect.”
Pugh added that “on a more practical level, maybe keep some water and food around, too.”
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