I’ve never trusted the stock market. After the Nvidia scandal, should I move my money to bonds? Christy Bieber Sat, November 14, 2026 at 9:00 AM EST 5 min read NVDA -3.12% Trade NVIDIA on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Powered by the AI boom, Nvidia (NASDAQ:NVDA) became the world's biggest company in recent years. Shares tripled in value in 2023, then more than doubled the following year. The stock's impressive performance even played a major role in driving the gains the broader market has enjoyed in the post-pandemic era.
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In 2026, however, the stock began to struggle amid questions about the future of AI. Everything came to a head in November, though, when it came out that Nvidia's CEO had multiple affairs, including one with a suspected Chinese spy.
The affair rumors weren't just tabloid fodder. Nvidia's share value plummeted amid the scandal, and news of the CEO's resignation will only make things worse. This is a cause for concern for many investors, since Nvidia's size and explosive growth led many ETFs and mutual funds to hold large positions in Nvidia. Many investors, even those who didn't buy Nvidia directly, are exposed.
Unfortunately, the incident has left some nervous investors feeling like the market is simply too risky. Let's say, for example, that Gareth has long been suspicious of stocks, and the scandal has now convinced him he can't trust his hard-earned funds to the market since a totally unexpected event like this can have such an impact.
He's thinking about putting all his money into bonds instead, because he believes that at least that market likely won't move because of one man's affair. But is that the right move?
While it may be tempting to move all of your money into bonds when there's turbulence in the stock market, the reality is that bonds aren't risk-free and you don't want too many of your assets in any one particular type of investment, even if it's seen as a relatively safe one.
"An all-bond allocation may make you feel safe until inflation or longevity rears its head. If rates decline, bond prices may go up, but lengthening duration or reaching for yield can raise their own issues," Mehdi Zare, a CFA and founder of Bina Capital, told Moneywise.
Bonds have also consistently underperformed stocks over a long time horizon, so you'd essentially be limiting your potential returns. And you'd be putting all of your eggs in one basket, so if the bond market performs poorly, your portfolio will suffer.
"Rarely would I recommend going 100% to bonds," Luca Rassenti, chief advisor and founder of Diverso Advisors, said. "You more likely want a diversifying set of return streams across asset classes targeting a higher risk-adjusted return and a specific risk limit. You want to hedge not only against future cash needs but also against inflation and other risks."
If Gareth moved forward with his plan, he'd essentially trade one problem — his anxiety about a stock market driven in part by unexpected forces — for another problem: capped returns and still some level of risk.
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It's also important not to confuse short-term news-driven market moves with the returns the market is likely to earn over the long term.
Nvidia shares may have taken a hit when the CEO was ousted, but the stock has already made many people millionaires. Given continued demand for the high-powered chips it produces, it could bounce back once things settle.
While news like the CEO's affair may have an outsized short-term impact, over the long term, the company's fundamentals and its competitiveness in the marketplace will determine how the stock performs. You can't assume a day, or even weeks or months, of losses, means that something isn't a good investment over a long time horizon.
The reality is that CEOs have had affairs, company shares have tumbled, and even more unusual events have happened over many decades, but ultimately over the long term, the S&P 500 (long-seen as a benchmark for the market as a whole) has produced around 10% average annual returns. The stock market is a good place to put your money, even if it can feel scary.
If you don't like the volatility that can come with being invested in a single stock, you can easily avoid that by investing in a broader market fund. While these funds still had exposure to Nvidia, the share prices generally didn't fall as much because the pooled funds are invested in other companies too.
Investing in ETFs, or otherwise spreading your dollars out over a mix of assets, is the right move for most investors as it reduces the risk to your portfolio presented by a crisis at any one particular company. As John Murillo, chief business officer at B2BROKER told Moneywise, "No matter your age, diversification is always the key."
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This article originally appeared on Moneywise.com under the title: I've never trusted the stock market. After the Nvidia scandal, should I move my money to bonds?
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
