QVML - Is A Stock Bubble Forming?
2024-06-22 03:13:00 ET
Summary
- Artificial Intelligence is a corporate game changer that will significantly increase corporate margins by automating many costly human labor expenditures.
- Almost every day now the Magnificent 7 add hundreds of billions of dollars in market cap value.
- The right way to navigate these sorts of environments is to be crystal clear about time horizons.
Here are three things I think I am thinking about:
1) The Concentration of the Mag 7 is Both Good and Bad. In a recent piece I discussed the risk of concentration in the US stock market. It’s really amazing. Almost every day now the Magnificent 7 add hundreds of billions of dollars in market cap value. It almost feels like the only game in town now as the market cap weighted stock indices trounce virtually everything else in large part due to this small group of companies. This is both good and bad. ...
Is A Stock Bubble Forming?