If the Stock Market Crashes, This Is the First ETF I'm Loading Up On
2026-10-25 11:30
•Justin Pope •The Motley Fool
•••• ••••••••••• Axe Cap view
Loading Up on QQQ If Markets Crash
The Nasdaq-focused QQQ ETF offers a solid way to ride AI's growth even amid a market downturn.
If global equity markets take a tumble, the Invesco QQQ ETF, which tracks the Nasdaq-100, should be on your radar. Despite doubling in the past three years, driven by excitement over artificial intelligence, it still captures leading tech companies like Nvidia, Microsoft, and Alphabet. These firms are at the forefront of AI infrastructure and innovations. Local investors should watch the USD/ZAR closely—any rand weakness might cushion dollar-based tech investments but can also fuel inflation. South Africa’s market doesn’t offer a direct equivalent to ride the AI wave, so QQQ serves as a practical proxy. The risk? Valuations are high, roughly 30 times earnings, and if AI spending disappoints or the global economy stumbles harder than expected, this trade can quickly sour. Still, for those comfortable with volatility, buy the dip here and hold for the long haul. this is just our opinion and not financial advice
Buy QQQ on any significant market dip, especially if the USD/ZAR remains stable or weakens. Avoid local tech plays—they don’t yet match these AI narratives. Trim if valuations spike beyond current levels.
- QQQ
- USD/ZAR
- Higher-than-expected US interest rate hikes slowing tech growth
- Underperformance in AI spending or regulatory setbacks in major tech companies
6/10
The article recommends the Invesco QQQ Trust (QQQ) as a strategic buy during a potential market crash. While the ETF has surged 98% over three years driven by AI enthusiasm, the author acknowledges risks including lofty valuations (P/E ratio ~30) and potential AI spending concerns. However, drawing parallels to the internet bubble, the author views any crash as a long-term buying opportunity for AI-exposed tech stocks.
Our take is based on reporting first published by The Motley Fool.