RSP - The Mag 7 Earnings Preview: Get Ready For A Bubble Burst
2024-07-08 02:35:42 ET
Summary
- The Mag 7 bubble is likely to burst only with the weak earnings season, just like the dot-com bubble did in March of 2000.
- A slowing economy is likely to affect the Q2 2024 earnings, and it's likely that Mag 7 companies will miss on their guidance, like Meta did in Q1.
- Thus, it is likely that the Mag 7 bubble could burst during the Q2 earnings season.
- Thus, the S&P 500 is facing a major drawdown, given the likely bubble burst and a possible recession.
The pivotal earnings season
There is more evidence that the economy is slowing, with some leading indicators at the levels generally associated with a recession . At the same time, the S&P 500 is trading at valuation multiples historically associated with bubble....
The Mag 7 Earnings Preview: Get Ready For A Bubble Burst