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Millionaire YouTuber Hank Green tells Gen Z to rethink their Tesla bets—and shares the portfolio changes he’s making to avoid AI-bubble fallout

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For years, YouTube star Hank Green has stuck to the same straightforward investing wisdom touted by legends like Warren Buffett: Put your money in an S&P 500 index fund and leave it alone.

It’s advice that has paid off handsomely for millions of investors: this year alone, the index is up roughly some 16%, and averaged more than 20% in gains over the last three years and roughly 14.6% over the past two decades. In most cases, it’s easily beaten investors who try to pick individual stocks like Tesla or Meta.

But as Wall Street frets over a possible AI-driven bubble—with voices from  “Big Short” investor Michael Burry to economist Mohamed El-Erian sounding alarms—Green isn’t waiting around to see what happens. He’s already rethinking how much of his own wealth is tied to Big Tech.

A major reason: The S&P 500 is more concentrated than ever. The top 10 companies—including Nvidia, Apple, Microsoft, Amazon, Google, and Meta—make up nearly 40% of the entire index. And nearly all of them are pouring billions into AI.

“I feel like my money is more exposed than I would like it to be,” Green said in a video that’s racked up over 1.6 million views. “I feel like by virtue of having a lot of my money in the S&P 500, I am now kind of betting on a big AI future. And that’s not a future that I definitely think is going to happen.”

So Green is hedging. He’s taking 25% of the money he previously invested in S&P 500 index funds—a meaningful chunk for a self-made millionaire—and moving it into a more diversified set of assets, including:

  • S&P 500 value index funds, which tilt toward companies with lower valuations and less AI-driven hype.
  • Mid-cap stocks, which he believes could benefit if smaller firms catch more of AI’s productivity gains.
  • International index funds, offering exposure outside the U.S. tech-heavy market.

Green’s thesis is simple: even if AI transforms the economy, the biggest winners may ultimately not be the mega-cap companies building the models.

“I think that these giant companies providing the AI models will actually be competing with each other for those customers in part by competing on price,” Green said. “And that might mean that the value delivered to small companies will be bigger than value delivered to the big AI companies. Who knows though? I just think that’s a thing that could happen.”

And if his concerns are overblown? He’s fine with that, too.

“If I’m wrong, 75% of my money is still in the safe place that everybody says your money should be, which is the S&P 500.”

YouTuber’s message to his Gen Z and Gen Alpha viewers: The stock market isn’t a ‘Ponzi scheme’

Gen Z continues to trail other generations in financial know-how—from saving and investing to understanding risk, according to TIAA. Moreover, one in four admit they are not confident in their financial knowledge and skill—a stark admission considering that 1 in 7 Gen Z credit card users have maxed out their credit cards and many young people hold thousands in student loan debt.

As a self-described “middle-aged, 45-year-old successful person,” Green said he’s trying to model what thoughtful, long-term decision-making actually looks like. And part of that effort includes dispelling one big misconception shared among some of his audience:

“I get these comments from people who are like, I can’t believe that you’re participating in this Ponzi scheme,” Green told Fortune. “I do want to alienate those people, because I don’t believe that the stock market is a Ponzi scheme. I do think that it’s overvalued right now, but I think that it’s tied to real value that’s really created in the world.”

His broader point: Investing isn’t about vibes or just dumping money into the hot stock of the week; rather, it’s something to seriously research.

“A lot of people think that investing is like getting a Robinhood account and buying Tesla,” Green added. “And I’m like, ‘Nope, you’ve got to get a Fidelity account and buy a low cost index fund everybody and or just keep it in your 401K and let the people who manage it manage it’—which is what a lot of people do, which is also fine.”

His younger viewers are paying attention. One popular comment summed it up: “As a young person entering the point in my life where I’m starting to think about investing, I really appreciate you talking through your logic and giving a ton of disclaimers rather than telling me I should buy buy buy exactly what you buy buy buy.” The comment has already racked up more than 4,700 likes.

Financial advisors agree: Portfolio diversification is king

While Green doesn’t come from a financial background, experts from the world of investing said they agree largely with his rationale: Having a diversified portfolio is the way to go—especially if you have worries about an AI bubble.

“Unlike many dot-com companies, today’s tech giants generally have substantial revenue, cash reserves, and established business models beyond just AI,” certified financial planner Bo Hanson, host of The Money Guy Show, said in a video analyzing Green’s take.

“Still, the concentration risk remains a valid concern for investors that are seeking diversification. However, this is precisely why we advise against putting all investments solely in the S&P 500, especially if you have a shorter time horizon.”

Hanson added wise investors spread their money across various asset classes, including small-caps, international, and bonds, in order to reduce portfolio volatility and provide

more consistent returns across various market environments.

It’s sentiment echoed by Doug Ornstein, director at TIAA Wealth Management, who said it’s important to realize that not every investment needs to chase growth.

“Particularly as you get older, having guaranteed income streams becomes crucial. Products like annuities can provide reliable payments regardless of market swings, creating a foundation of financial security,” Ornstein told Fortune. “Think of it as building a floor beneath your portfolio—one that market volatility can’t touch.”



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Trump administration waives part of a Biden-era fine against Southwest Air for canceled flights

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The U.S. Department of Transportation is waiving part of a fine assessed against Southwest Airlines after the company canceled thousands of flights during a winter storm in 2022.

Under a 2023 settlement reached by the Biden administration, Southwest agreed to a $140 million civil penalty. The government said at the time that the penalty was the largest it had ever imposed on an airline for violating consumer protection laws.

Most of the money went toward compensation for travelers. But Southwest agreed to pay $35 million to the U.S. Treasury. Southwest made a $12 million payment in 2024 and a second $12 million payment earlier this year. But the Transportation Department issued an order Friday waiving the final $11 million payment, which was due Jan. 31, 2026.

The department said Southwest should get credit for significantly improving its on-time performance and investing in network operations.

“DOT believes that this approach is in the public interest as it incentivizes airlines to invest in improving their operations and resiliency, which benefits consumers directly,” the department said in a statement. “This credit structure allows for the benefits of the airline’s investment to be realized by the public, rather than resulting in a government monetary penalty.”

The fine stemmed from a winter storm in December 2022 that paralyzed Southwest’s operations in Denver and Chicago and then snowballed when a crew-rescheduling system couldn’t keep up with the chaos. Ultimately the airline canceled 17,000 flights and stranded more than 2 million travelers.

The Biden administration determined that Southwest had violated the law by failing to help customers who were stranded in airports and hotels, leaving many of them to scramble for other flights. Many who called the airline’s overwhelmed customer service center got busy signals or were stuck on hold for hours.

Even before the settlement, the nation’s fourth-biggest airline by revenue said the meltdown cost it more than $1.1 billion in refunds and reimbursements, extra costs and lost ticket sales over several months.



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Trump slams Democratic congressman as disloyal for not switching parties after pardon

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Trump blasted Cuellar for “Such a lack of LOYALTY,” suggesting the Republican president might have expected the clemency to bolster the GOP’s narrow House majority heading into the 2026 midterm elections.

Cuellar, in a television interview Sunday after Trump’s social media post, said he was a conservative Democrat willing to work with the administration “to see where we can find common ground.” The congressman said he had prayed for the president and the presidency at church that morning “because if the president succeeds, the country succeeds.”

Citing a fellow Texas politician, the late President Lyndon Johnson, Cuellar said he was an American, Texan and Democrat, in that order. “I think anybody that puts party before their country is doing a disservice to their country,” he told Fox News Channel’s “Sunday Morning Futures.”

Trump noted on his Truth Social platform that the Democratic President Joe Biden’s administration had brought the charges against Cuellar and that the congressman, by running once more as a Democrat, was continuing to work with “the same RADICAL LEFT” that wanted him and his wife in prison — “And probably still do!”

“Such a lack of LOYALTY, something that Texas Voters, and Henry’s daughters, will not like. Oh’ well, next time, no more Mr. Nice guy!” Trump said. Cuellar’s two daughters, Christina and Catherine, had sent Trump a letter in November asking that he pardon their parents.

Trump explained his pardon he announced Wednesday as a matter of stopping a “weaponized” prosecution. Cuellar was an outspoken critic of Biden’s immigration policy, a position that Trump saw as a key alignment with the lawmaker.

Cuellar said he has good relationships within his party. “I think the general Democrat Caucus and I, we get along. But they know that I’m an independent voice,” he said.

A party switch would have been an unexpected bonus for Republicans after the GOP-run Legislature redrew the state’s congressional districts this year at Trump’s behest. The Texas maneuver started a mid-decade gerrymandering scramble playing out across multiple states. Trump is trying to defend Republicans’ House majority and avoid a repeat of his first term, when Democrats dominated the House midterms and used a new majority to stymie the administration, launch investigations and twice impeach Trump.

Yet Cuellar’s South Texas district, which includes parts of metro San Antonio, was not one of the Democratic districts that Republicans changed substantially, and Cuellar believes he remains well-positioned to win reelection.

Federal authorities had charged Cuellar and his wife with accepting thousands of dollars in exchange for the congressman advancing the interests of an Azerbaijan-controlled energy company and a bank in Mexico. Cuellar was accused of agreeing to influence legislation favorable to Azerbaijan and deliver a pro-Azerbaijan speech on the floor of the U.S. House.

Cuellar has said he his wife were innocent. The couple’s trial had been set to begin in April.

In the Fox interview, Cuellar insisted that federal authorities tried to entrap him with “a sting operation to try to bribe me, and that failed.”

Cuellar still faces a House Ethics Committee investigation.



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Jerome Powell faces a credibility issue as he tries to satisfy hawks and doves on a divided Fed

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With the Federal Reserve split between increasingly hawkish and increasingly dovish policymakers, Chairman Jerome Powell is due to perform some serious log-rolling when the central bank meets this week.

Another rate cut is a near certainty after the Fed meeting ends on Wednesday, but the main question is what Powell will say about the prospects for more easing next month.

Wall Street expects a hawkish cut, meaning Powell is likely to avoid signaling a January cut to appease Fed hawks, after joining doves to lower rates this month.

“Chair Powell is facing the most divided committee in recent memory,” analysts at Bank of America said in a note on Friday. “Therefore, we think he will attempt to balance the expected rate cut with a hawkish stance at the press conference, just as he did in October.”

But at the same time, the Fed chief has also been insistent that policymakers are not on a pre-determined course and that rate moves depend on the data that come in.

As a result, BofA is doubtful that he can pull off a hawkish cut so easily, considering all the market-moving data that will come out between the two meetings, with some delayed due to the government shutdown.

The week after the Fed meeting, for example, jobs numbers for October and November, October retail sales, and the consumer price index for November will come out. And December readings for those indicators are likely to be released before the next meeting on Jan. 27-28.

“It will be difficult for Powell to send a credibly hawkish signal at the press conference,” analyst said.

BofA still sees a way for him to thread the needle. One option is for Powell to suggest that “significant further weakening” in the jobs data will be necessary to trigger a January cut.

Another option is to argue that 3.5%-3.75%—where benchmark rates would be if the Fed cuts again this week—isn’t restrictive after accounting for inflation, meaning the central bank is no longer weighing on the economy as much.

Similarly, JPMorgan chief U.S. economist Michael Feroli said he expects Powell to stress that after this week’s cut, rates will be close to neutral. So any additional easing would depend on meaningful deterioration in the labor market and not be predicated in risk management.

For now, Wall Street doesn’t expect a January cut, with 25% odds currently being priced in on CME Group’s FedWatch tool. But BofA thinks Powell will likely leave the door open for one.

“We wouldn’t be surprised if markets start pushing more aggressively for a Jan cut in the near term,” analysts predicted. “And the anticipation of this outcome might raise the probability of more dissents in Dec, since hawks might be inclined to dig their heels in instead of compromising.”



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