Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance Dear Reader, Ed Yardeni just raised a major red flag… The President of Yardeni Research is now telling his investors to underweight the Magnificent Seven. Yes, you read that correctly…. Under-Weight. As you know, the "Magnificent Seven" includes Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), Nvidia (NVDA), Tesla (TSLA), Meta (META) and Alphabet (GOOGL). This grouping has been responsible for a majority of the market's gains over the last three years. Just this year, the Mag7 group has gained +24%, which has outpaced the Invesco S&P 500 Equal Weight ETF's +9.6% gain. As it stands, information/technology now accounts for 45% of the entire S&P 500 – which means that most of the market's heavy upside lifting has been carried by these seven companies. But now, Yardeni says it's time to get out – and focus on what he calls the "Impressive-493", referring to the remaining 493 S&P 500 stocks. It's easy to see why… All of the Mag-7 members now trade at a premium to the S&P 500. This could lead to big opportunities in the over-looked (and now undervalued) remainder of the S&P. Further adding fuel to the fire…. |
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