Preparing for a Bear Market: Stocks to Avoid and One Worth Holding

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Key Facts on Market Vulnerabilities

If a bear market occurs, it may primarily stem from financially strained AI companies, notably Oracle and CoreWeave, both heavily in debt. Oracle’s total debt stands at $156 billion with a free cash flow shortfall of $24.5 billion for fiscal 2026, while CoreWeave holds nearly $25 billion in debt against only $2.24 billion in cash.

As of now, the S&P 500 is up nearly 20% since the start of the year after experiencing a 7% drop in the first four months. If market dynamics shift, Berkshire Hathaway emerges as a strong alternative, equipped with approximately $400 billion in cash, enabling it to capitalize on declining markets.

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