Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance Editor's Note: Have you ever wanted to learn how to trade without sitting through boring trading videos? Our Lead Technical Tactician Nate Bear is going to host a "Holiday Trading Challenge" next week where you can look over his shoulder as he targets 100%, 500%, and even 1,000% trading gains. Click here to learn more. - Stephen Prior, Publisher
Dear Reader, Earlier this week, I wrote about the "underappreciated 493" and Ed Yardeni's thesis that the Mag 7 run could be over. The Mag 7 includes big tech groups like Nvidia and Alphabet (GOOGL), which make up 35-37% of the total S&P 500 market value. Because the S&P 500 is market-cap weighted, those seven companies hold outsized influence. The truth is... a 35-37% concentration is a balance problem. Earnings growth can't keep scaling forever, Which is why I'm tilting toward non-tech sectors as the next wave of productivity and profit growth. Non-Tech Companies are Becoming Tech Companies The core takeaway I took from Ed Yardeni's thesis is this... Non-tech companies are becoming tech companies not because they want to - they HAVE to. AI, automation, data, cloud, robotics – these are no longer perks for a non-tech group. They're now foundational infrastructure. This is why the "underappreciated 493" argument is so strong. Imagine these 493 companies adopting AI. How much faster could they grow? |
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