META - The Magnificent 7 Growth Rate Will Slow Significantly - Starting Now

2024-07-08 07:15:00 ET

Summary

• Divergences in the market are growing larger, with the top five stocks accounting for 57% of 2024 gains.
• Earnings growth of top stocks driving the market rally, with expectations of slowing growth rates in the future.
• Investors paying higher premiums for higher growth rates, but sales growth rates have already peaked and are slowing.

The market divergences are growing, especially now when it seems clear that the S&P 500 ( SP500 ) is pulling away from its peers like the Russell 2000 ( RTY ), the Dow Jones ( DJI ), and even the equally weighted S&P 500 ( RSP ). The biggest driver of this divergence has been the rally's lopsided nature, driven by just a few names that accounted for most of the gains in 2024....

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