Joel Elconin – Strong US Data, Market Breadth Widening, Low Volatility, Welcome To Summer
Joel Elconin, Co-Host of the Benzinga PreMarket Prep Show and Editor of the PreMarket Prep website joins me to recap the stronger than expected US economic data, widening market breadth and low volatility in US markets. We do need to acknowledge that it is summer so volumes are down but there is not a whole lot on the calendar that could be impactful for markets.
Joel shares what he is seeing in terms of buyers and sellers in the markets. We also look at the energy sector, the set ups for oil and natural gas.
Remember the “Nifty 50” stocks of the 1970s?
Now apparently we only need the “Magnificent 7.”
What could possibly go wrong? (right?)
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“In the United States, the term Nifty Fifty was an informal designation for a group of roughly fifty large-cap stocks on the New York Stock Exchange in the 1960s and 1970s that were widely regarded as solid buy and hold growth stocks, or “Blue-chip” stocks. These fifty stocks are credited by historians with propelling the bull market of the early 1970s, while their subsequent crash and underperformance through the early 1980s are an example of what may occur following a period during which many investors ignore fundamental stock valuation metrics, to instead make decisions on popular sentiment.”
The “Nifty Fifty” are prime examples of why you must sell when you have a profit, most of them if not all of them are no longer around. It’s hard to believe but in 40 years from now most of the “Magnificent 7” will probably be memories of the past. DT
Or memories of the future? Time for another Moosehead
Good point DT. I think that last line from Wikipedia regarding the “Nifty Fifty” summed up the situation perfectly, that we’ve seen play out a few times now, and is very applicable to the new “Magnificent Seven.”
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From the Wiki regarding the Nifty Fifty, but think of this passage in lieu of the current complete disregard for where the tech stocks and AI stocks are being valued on P/E ratios….
“are an example of what may occur following a period during which many investors ignore fundamental stock valuation metrics, to instead make decisions on popular sentiment.”
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Once again, retail investors are caught up in the popular sentiment of AI and Tech, and while in the midst of their current buying frenzy, reinforced by other investors piling into the same few names, they can’t see the forest for the trees…
It’s precisely like prior bubbles…. The Dot Com bubble in 1998-2001, the initial cannabis bubble, several waves of the crypto bubbles, the vaccine stock fervor in 2020/2021, the meme stock crazes of 2021, or the 2020-2021 growth-tech mania…etc…
Human emotions and greed and ignoring of the fundamental valuations are the same each time, and it ends the same each time… Rinse and repeat.
Grumble, you can’t get Moosehead in the happy home, you might wander off. LOL! DT
Forget FAANG and GAMMA, the ‘Magnificent 7′ Tech Stocks – Including Tesla and Nvidia – Now Dominate The Market
George Glover – Business Insider – Thu, June 29, 2023
“A handful of Big Tech stocks have accounted for nearly all of the market’s gains in 2023. Nvidia, Tesla, and five others have all racked up huge returns, with investors emboldened by the expectation that the Federal Reserve will soon slash interest rates loading up on shares in a bid to take advantage of the artificial intelligence boom.”
“The stocks’ massive gains have powered benchmark indices higher as well, with the S&P 500 up 14% and the Nasdaq Composite soaring 30% year-to-date.”
“Some analysts have taken to calling the group a new name: ‘The Magnificent Seven’. That cluster features the GAMMA stocks – Google parent Alphabet, Apple, Meta Platforms, Microsoft, and Amazon – as well as two new names in Nvidia and Tesla.”
https://finance.yahoo.com/news/forget-faang-gamma-magnificent-7-192331285.html