Tag Archives: Magnificent 7
Tech Tantrums
The past week has been turbulent for Big Tech, with disappointing reactions to earnings from Microsoft, Amazon and Alphabet, while Apple and Meta emerged relatively unscathed after announcing their results. Concerns about growing capital expenditures on AI1 among these giants have led to renewed bubble fears among market participants. In an environment characterized by such…
- Categories Equities
- Other Tags
Quality over Quantity: Features of the S&P 500 Quality Index
Beyond being a familiar adage, “quality over quantity” lies at the heart of quality-based investing. Rather than concentrating on the largest stocks, quality indices systematically tilt toward companies with strong profitability, high earnings quality and robust balance sheets. Over the long term, the S&P 500® Quality Index has delivered impressive absolute and risk-adjusted returns as…
- Categories Factors
- Other Tags
- Categories
- Factors
- Other Tags
Fashionably Late Cycle: The S&P 500 Market Leaders Index
The late-cycle economy is defined as the final phase of the macroeconomic cycle when economic activity hits its peak. The period is characterized by high but slowing growth, rising inflation that may affect profit generation, a tight labor market and volatility in interest rates. Given these conditions, many market participants are considering how best to…
- Categories Factors
- Other Tags
Animal Spirits or Anxiety?
Big Tech and the strength of the Magnificent 7 stocks have powered the S&P 500® to 36 all-time closing highs through the end of October. Amid the euphoria, nervousness about the AI boom1 has sent jitters through the market, most recently with SoftBank’s sale of its stake in Nvidia. The extreme level of mega-cap dominance…
- Categories Equities, S&P 500 & DJIA
- Other Tags
Terrible Twos
Life has been a little eventful since we last checked in. Under normal circumstances, this blog would review March and Q1 performance of S&P 500® sectors and blends. Yes, tariffs are the elephant in the room we’ve been unable to avoid all year, but as of April, that elephant seems to have invited the rest…
- Categories Equities, S&P 500 & DJIA
- Other Tags
- Categories
- Equities, S&P 500 & DJIA
- Other Tags
Mom’s Recipe: Sectors, Stocks and Size
The S&P 500® Momentum Index has been one of the best-performing of all the S&P 500 Factor Indices in the past few years. A closer inspection of the drivers of performance identifies constituent selection as paramount, highlighting the importance of dynamically retreating from the largest of the mega caps in periods when smaller names took…
- Categories Factors
- Other Tags
- Categories
- Factors
- Other Tags
Contributions across Multiple Sectors as the S&P/ASX All Technology Index Outperforms
As well-known technology giants continue to make headlines globally, acquiring monikers such as FAANG and the Magnificent 7, there are smaller (yet no less innovative) Australian-listed companies across a range of sectors that are at the forefront of fast-paced technology advancements such as AI and digital transformation. The S&P/ASX All Technology Index outperformed all Australian…
- Categories Equities
- Other Tags
- Categories
- Equities
- Other Tags
Magnificent Mid Caps and Sensational Small Caps
U.S. equities rose in 2023, with the mega-cap “Magnificent Seven” driving most of the S&P Composite 1500®’s 25% gain. While mega caps continued to outperform in January 2024, not all seven of the aforementioned group ranked highly. This has led to some market commentators looking to coin new phrases: “Sensational Six” or “Super Six” (the…
- Categories Equities
- Other Tags
The Magnificent Seven: A Taxing Question
“The Magnificent Seven” term has transcended its cinematic roots to become the collective moniker for a select group of U.S. mega-cap stocks responsible for over 90% of the S&P 500®’s YTD gains to October’s end. Their stellar performance has, naturally, elevated their valuations. It has also increased their already-hefty collective weight in the equity benchmark….
- Categories Equities
- Other Tags