Magnificent 7

Weekly Update

Government Debt Concerns … Yet Again

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Published May 30, 2025

 

We have been in business for almost 25 years now. Throughout that time, investors have consistently expressed concerns about the levels of U.S. government debt, with no real action taken by Congress or any Administration.

As the government wrestles with this year’s budget and the resulting increase in debt, the topic is once again in the news. To further ratchet up the intensity, Moody’s recently downgraded U.S. credit (the last major credit agency to do so). A disappointing treasury bond auction, both in the U.S. and in Japan (for their debt), created more concern. (more…)

Weekly Update

Mag 7 Stocks Skid

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Published July 26, 2024

The high-flying Magnificent Seven (Mag 7) stocks came under pressure again this week as earnings from Alphabet (aka Google/YouTube) and Meta (aka Facebook/Instagram) failed to delight investors. That earnings disappointment dragged down technology stocks broadly as shown in the chart below. However, to this point, the pullback in technology stocks has found support at a logical level ($210 = the line drawn), while the Relative Strength Index (RSI on the lower part of the chart) remained in “bullish” territory above 50. We will see if earnings from the other Mag 7 companies keeps support intact or provides further disappointment. (more…)

Weekly Update

On the MAG7, Armageddon, and Cheap Stocks

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Published February 16, 2024

 

Below are excerpts from the recent edition of JP Morgan’s Michael Cembalest’s newsletter. In his latest letter, Mr. Cembalest runs through how the rally in the shares of the Magnificent Seven is primarily earnings-driven, the performance of the doom-and-gloomers on investment returns, and lastly, a review of some of the cheapest investments on the planet and whether the tumble in Chinese shares is worth buying. (more…)