All good things come to an end. Phil Rosen is reporting from New York. This is the last edition of 10 Things Before Opening Bell.
I've had the honor of being in your inbox every morning for the past two years. I appreciate you sharing your mornings.
Don't worry, I will still write for Insider. Please stay in touch. Please keep in touch.
You will receive our flagship newsletter Insider Today. Some of my very clever colleagues are currently revamping it. Please fill out the quick five-question questionnaire to let us what you would like to see.
Let's go to the news one more time.
[TAG0][TAG3]
1. Magnificent seven? The Magnificent Seven is not the 1960 Western (or its remake from 2016) but the top stocks that analysts are raving about.
I don't blame them. I don't fault them.
These Big Tech stocks are responsible for almost all of the gains on the market in 2023.
Nvidia reached its first trillion-dollar valuation last month. Tesla's growth this year has been astronomical, with a 137% increase.
Apple, Microsoft Alphabet and Amazon all saw their shares rise between 35% to 55%. Apple is on the verge of becoming the world's first company valued at $3 trillion.
Magnificent seven is now the name of the seven largest US listed stocks.
Some strategists don't think that this is necessarily good news.
Kathleen Brooks, founder of Minerva Analysis, told Insider that there is a risk when there are a small group of leaders.
She warned that if interest rates rise even further, growth stocks such as these could begin to fall.
John Hussman of Hussman Investment Trust, who predicted the 2008 market crash, wrote a note in which he said that the recent rally is dominated by tech and narrow bias, which means there will be big losses.
Hussman stated that his opinion would change depending on market conditions. "My impression is that this current market advance is narrow and selective speculation – a rally in a bear market driven by the fear of missing the resumption a bubble which is actually at the beginning stages of collapse. And that the equity markets will likely suffer significant losses when the market cycle is complete."
Do you want to buy or sell the Magnificent 7? Let me know by tweeting me (@philrosenn), or sending me an email (prosen@insider.com).
In other news:
[TAG1][TAG4]
2. Investors are awaiting data on personal consumption expenses, an important inflation indicator. View the latest market movements.
3. Heiwado Co., Record PLC and others all reporting.
4. Goldman Sachs predicts that small-cap stocks will outperform S&P 500 in the coming year. The Russell 2000 could return roughly 14% over that period — here's how to capture this upside.
5. Costco has taken a leaf out of Netflix’s book and is cracking down hard on membership cards that are shared. Wall Street is delighted — here's the reason.
6. Experts from think tanks say that China's economic recovery is "destined to fail." Chinese President Xi Jinping is likely to abandon his plans for consumption led growth because a shift away from an approach focusing on investment could cause backlash.
7. Despite the fact that the labor market has performed better than expected, Americans are still not optimistic about their economy. In the last three decades, unemployment has played a much smaller role in determining optimism. Instead, everyone has been focused on the impact of inflation on wages.
8. According to a famous bear who predicted the crashes of 2000 and 2008, stocks are set to take a serious hit. He predicts a massive sell-off, as valuations are nearing historic highs. He believes that the current rally has become too niche and speculative.
9. The S&P 500 is expected to triple its gains in the next 12 months thanks to this batch of low-risk shares. Goldman Sachs strategists have selected names that they believe will deliver high returns and low volatility. Here is the complete list of 39.
[TAG2][TAG5]
10. Apple is an amazing company, but it's not really that much driving its $3 trillion valuation. Sarah Kunst, Cleo Capital, said as much. According to her, fundamentals don't drive its latest rally.
Curated by Phil Rosen in New York. Feedback or tips? Tweet
@philrosenn
or email
prosen@insider.com
.
Max Adams (@maxradams), in New York, and Hallam Bullock (@hallam_bullock), in London, edited the article.
—————————————————————————————————————————————
By: prosen@insider.com (Phil Rosen)
Title: The stock market’s gains are almost entirely concentrated in the ‘Magnificent 7’ – and that could mean a crash is coming
Sourced From: www.businessinsider.com/stocks-market-crash-housing-mortgage-fed-rates-finance-wall-street-cash-2023-6
Published Date: Fri, 30 Jun 2023 10:10:00 +0000
Related posts:
Tesla short-sellers have lost $7Billion in 2023 due to Tesla’s stock rising 86%
Tesla workers assured by Elon Musk they shouldn’t be “bothered” by the stock market chaos
Analysts claim that Tesla’s stock rally won’t last for long, as Ford & GM and other old-guard competitors will be rushing into the EV space.
This investor has $74 million of Tesla stock. Here’s his reasoning for being bullish on Elon Musk and the future of Elon Musk EV.
Leave a Reply