Latest news with #NiftyFifty
Yahoo
02-08-2025
- Business
- Yahoo
Some strategists see a stock-market bubble brewing — and it's not the Magnificent 7's fault this time
Stock valuations are rising. Rather than the Mag Seven, look at the "Terrific 20." The Terrific 20 stocks includes diverse sectors, indicating a broadening market beyond Big Tech. But some warn of "speculative fervor," given that price multiples, not earnings, are on the rise. Stock valuations are getting frothy again, but this time, it's not all Big Tech's fault. Yes, valuations of the Magnificent Seven stocks — Apple, Amazon, Microsoft, Meta, Alphabet, Nvidia, and Tesla — are back up after since bottoming in April. Yet, the group's 12-month forward price-to-earnings ratio is still down from mid-2024, mid-2023, and 2020 levels. Meanwhile, forward PE ratios on the next 20 stocks in the S&P 500 continue to surge, topping levels seen earlier this year. Their valuations are also higher than at any point over the last decade. Arun Sai, a senior multi-asset strategist at Pictet Asset Management, calls the group the "Terrific 20." Some may see the rising forward expectations for a widening number of stocks as a sign of health, as the rally extends beyond just the most popular stocks. But when stocks rise because of multiple expansion instead of earnings growth, it may be a sign that investor sentiment is becoming overheated. "These companies span a broad set of sectors more closely tied to the real economy, including financials, energy, industrials, consumer, and legacy tech," Sai wrote on Tuesday. "Names like Broadcom, Walmart, JPMorgan, Berkshire Hathaway, Visa, and GE Aerospace now account for ~17% of the MSCI US index, compared to 33% for the Mag 7." "Broader participation is a positive — when it's driven by earnings," he continued. "But when more of the market gets expensive, the narrative that 'US equities aren't overpriced, just a few exceptional companies are' becomes harder to justify." Sai compared the current environment to the so-called "Nifty Fifty" bubble in the 1960s. Richard Bernstein, the founder of Richard Bernstein Advisors and former chief investment strategist at Merrill Lynch, said in June that there are parallels to another famous episode of euphoria—the dot-com bubble of 2000—as the market seems solely focused on an emerging technology. On Wednesday, Bernstein reiterated his skepticism of the rally, noting that the market is still relatively concentrated even if valuations are surging among more than just the top seven stocks. Trading of leveraged ETFs, zero-day options, and low dollar-value stocks is also picking back up, signs of excess optimism, he said. "If you're a trader, I think you should take a deep breath and kind of look at what's going on and realize that everybody's in this huge speculative fervor," Bernstein told Business Insider. "But if you're an investor and you want to be a little patient, I don't think it gets much better than this." "The reckless abandon is going to leave you with so many opportunities," he continued. "It's going to be like post-2000." Most Wall Street strategists don't see a dramatic pullback ahead, and few have made direct comparisons to prior bubble episodes. In recent days, however, some have extended quiet warnings to investors about the market's near-term direction. Ulrike Hoffmann-Burchardi, CIO Americas and global head of equities at UBS Global Wealth Management, said in a note on Tuesday that "investors should be mindful of potential market swings in the coming weeks," and that "capital preservation or phasing-in strategies can be effective in navigating near-term volatility." While valuations are no doubt extended, there's no guarantee a major market top is near, and the AI trade may have room to run as the technology evolves. Meta and Microsoft, for example, reported strong earnings beats this week and gave positive forward guidance, causing shares to soar. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
02-08-2025
- Business
- Business Insider
Some strategists see a stock-market bubble brewing — and it's not the Magnificent 7's fault this time
Yes, valuations of the Magnificent Seven stocks — Apple, Amazon, Microsoft, Meta, Alphabet, Nvidia, and Tesla — are back up after since bottoming in April. Yet, the group's 12-month forward price-to-earnings ratio is still down from mid-2024, mid-2023, and 2020 levels. Meanwhile, forward PE ratios on the next 20 stocks in the S&P 500 continue to surge, topping levels seen earlier this year. Their valuations are also higher than at any point over the last decade. Arun Sai, a senior multi-asset strategist at Pictet Asset Management, calls the group the "Terrific 20." Some may see the rising forward expectations for a widening number of stocks as a sign of health, as the rally extends beyond just the most popular stocks. But when stocks rise because of multiple expansion instead of earnings growth, it may be a sign that investor sentiment is becoming overheated. "These companies span a broad set of sectors more closely tied to the real economy, including financials, energy, industrials, consumer, and legacy tech," Sai wrote on Tuesday. "Names like Broadcom, Walmart, JPMorgan, Berkshire Hathaway, Visa, and GE Aerospace now account for ~17% of the MSCI US index, compared to 33% for the Mag 7." "Broader participation is a positive — when it's driven by earnings," he continued. "But when more of the market gets expensive, the narrative that 'US equities aren't overpriced, just a few exceptional companies are' becomes harder to justify." Sai compared the current environment to the so-called "Nifty Fifty" bubble in the 1960s. Richard Bernstein, the founder of Richard Bernstein Advisors and former chief investment strategist at Merrill Lynch, said in June that there are parallels to another famous episode of euphoria—the dot-com bubble of 2000—as the market seems solely focused on an emerging technology. On Wednesday, Bernstein reiterated his skepticism of the rally, noting that the market is still relatively concentrated even if valuations are surging among more than just the top seven stocks. Trading of leveraged ETFs, zero-day options, and low dollar-value stocks is also picking back up, signs of excess optimism, he said. "If you're a trader, I think you should take a deep breath and kind of look at what's going on and realize that everybody's in this huge speculative fervor," Bernstein told Business Insider. "But if you're an investor and you want to be a little patient, I don't think it gets much better than this." "The reckless abandon is going to leave you with so many opportunities," he continued. "It's going to be like post-2000." Most Wall Street strategists don't see a dramatic pullback ahead, and few have made direct comparisons to prior bubble episodes. In recent days, however, some have extended quiet warnings to investors about the market's near-term direction. Ulrike Hoffmann-Burchardi, CIO Americas and global head of equities at UBS Global Wealth Management, said in a note on Tuesday that "investors should be mindful of potential market swings in the coming weeks," and that "capital preservation or phasing-in strategies can be effective in navigating near-term volatility." While valuations are no doubt extended, there's no guarantee a major market top is near, and the AI trade may have room to run as the technology evolves.
Business Insider
02-08-2025
- Business
- Business Insider
Some strategists see a stock-market bubble brewing — and it's not the Magnificent 7's fault this time
Stock valuations are getting frothy again, but this time, it's not all Big Tech's fault. Yes, valuations of the Magnificent Seven stocks — Apple, Amazon, Microsoft, Meta, Alphabet, Nvidia, and Tesla — are back up after since bottoming in April. Yet, the group's 12-month forward price-to-earnings ratio is still down from mid-2024, mid-2023, and 2020 levels. Meanwhile, forward PE ratios on the next 20 stocks in the S&P 500 continue to surge, topping levels seen earlier this year. Their valuations are also higher than at any point over the last decade. Arun Sai, a senior multi-asset strategist at Pictet Asset Management, calls the group the "Terrific 20." Some may see the rising forward expectations for a widening number of stocks as a sign of health, as the rally extends beyond just the most popular stocks. But when stocks rise because of multiple expansion instead of earnings growth, it may be a sign that investor sentiment is becoming overheated. "These companies span a broad set of sectors more closely tied to the real economy, including financials, energy, industrials, consumer, and legacy tech," Sai wrote on Tuesday. "Names like Broadcom, Walmart, JPMorgan, Berkshire Hathaway, Visa, and GE Aerospace now account for ~17% of the MSCI US index, compared to 33% for the Mag 7." "Broader participation is a positive — when it's driven by earnings," he continued. "But when more of the market gets expensive, the narrative that 'US equities aren't overpriced, just a few exceptional companies are' becomes harder to justify." Sai compared the current environment to the so-called "Nifty Fifty" bubble in the 1960s. Richard Bernstein, the founder of Richard Bernstein Advisors and former chief investment strategist at Merrill Lynch, said in June that there are parallels to another famous episode of euphoria—the dot-com bubble of 2000—as the market seems solely focused on an emerging technology. On Wednesday, Bernstein reiterated his skepticism of the rally, noting that the market is still relatively concentrated even if valuations are surging among more than just the top seven stocks. Trading of leveraged ETFs, zero-day options, and low dollar-value stocks is also picking back up, signs of excess optimism, he said. "If you're a trader, I think you should take a deep breath and kind of look at what's going on and realize that everybody's in this huge speculative fervor," Bernstein told Business Insider. "But if you're an investor and you want to be a little patient, I don't think it gets much better than this." "The reckless abandon is going to leave you with so many opportunities," he continued. "It's going to be like post-2000." Most Wall Street strategists don't see a dramatic pullback ahead, and few have made direct comparisons to prior bubble episodes. In recent days, however, some have extended quiet warnings to investors about the market's near-term direction. Ulrike Hoffmann-Burchardi, CIO Americas and global head of equities at UBS Global Wealth Management, said in a note on Tuesday that "investors should be mindful of potential market swings in the coming weeks," and that "capital preservation or phasing-in strategies can be effective in navigating near-term volatility." While valuations are no doubt extended, there's no guarantee a major market top is near, and the AI trade may have room to run as the technology evolves. Meta and Microsoft, for example, reported strong earnings beats this week and gave positive forward guidance, causing shares to soar.
Miami Herald
11-07-2025
- Business
- Miami Herald
Wall Street giant issues stark message on S&P 500
The S&P 500 is back notching up all-time highs, capping off what's been a remarkable rebound. Things look very different for investors now, who are breathing easier after a rough start to the year. Don't miss the move: Subscribe to TheStreet's free daily newsletter However, under the surface of this optimism, there is a hidden imbalance that continues to grow quietly. This risk is likely to turn today's party into tomorrow's headache if the momentum swings the other way. Image source: XinhuaOver the past couple of years in particular, the "Magnificent 7", which includes Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, and Tesla, have turned the S&P 500 into their personal growth machine. Back in mid-2023, these mega-caps accounted for a whopping one-third of the index's market value. By early 2024, that number grew even more, creeping up to 35%. That figure is now pushing toward 40%, the highest concentration level in more than 50 years. It's not hard to gauge, though, if we look at the scoreboard. Nvidia is up an eye-popping 936% over the past three years, Meta's up 326%, Amazon popped 93%, and Apple notched a 44% gain, beating the broader index by a country mile. Related: Cathie Wood drops bold message on Apple, Tesla stock Nevertheless, those blockbuster runs supercharged passive portfolios but also rewired the S&P 500. Critics say index investors aren't getting true diversification anymore. Instead, they're loaded by a select few pricey tech stocks that could switch gears in a regulatory crackdown or if earnings miss following a major stumble. The risks are too real to ignore for savvy investors. Nvidia's sky-high valuations continue raising eyebrows (having flirted with $4 trillion market cap recently). Apple faces antitrust probes in Europe. Google's ad business is under fresh scrutiny. Also, EV giant Tesla's once-torrid growth has cooled off. More Tech Stock News: Tesla's next bet could flip the robotaxi raceCathie Wood shells out $13.9 million for one high-stakes biotech stockApple's quiet shake-up could redefine its future It's giving investors flashbacks to the "Nifty Fifty" collapse of the 1970s, when overconfidence in a few blue chips ended in major pain. Wall Street giant Apollo has just put out a fresh warning on those holding the S&P 500. According to Apollo Chief Economist Torsten Sløk, investors looking for the traditional "broad diversification" from the S&P 500 are essentially betting on the Mag 7, which continues powering ahead. Collectively, these mega-cap titans now account for roughly 40% of the S&P 500's total market value. That's a paradigm shift from what the benchmark index intended to do, which was to spread your risk across 500 companies, sectors, and trends. Related: Palantir makes surprise move into weather The problem is, when you have just seven names propping up almost half the index, a bad day for Big Tech can result in a massive setback for everyone. And tech stocks aren't living in a bubble. They're effectively linked to consumer spending, interest rates, and geopolitical tensions, and any surprise can rattle these giants quickly. Think of surprise antitrust crackdowns, AI hype cooling off, or disappointing earnings. Any of those worrying trends could send the Mag 7 sliding, dragging the entire index with them. It's no wonder that many strategists are concerned about how it's shaping their portfolios. For those worried about the major concentration risk, it will be more fruitful to dig deeper and hunt for smaller caps, dividend payers, or international stocks to look for real diversification. Apollo's takeaway is blunt. Passive index funds aren't the safety net they once were, and if you're in the S&P 500, you're basically betting all-in on Big Tech, regardless of whether you intend to. Related: JPMorgan delivers blunt warning on S&P 500 The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Axios
09-06-2025
- Business
- Axios
Exclusive: Bub and Pop's will soon reopen in NoMa with spiked sodas and bowling
Beloved sandwich shop Bub and Pop's will soon open in a new, larger location in NoMa after a decade-plus in Dupont Circle, the owner exclusively tells Axios. Why it matters: Bub's seemingly abrupt shutter last week sparked fear of a permanent closure among its fanbase, but don't worry — the new version in the former Eleanor space promises to be bigger and better than ever. State of play: Chef/owner Jon Taub tells Axios he's aiming to open in about two weeks. He's keeping the bones of the Eleanor's barcade, meaning plenty of room to settle in with a beer and play throwback games or duck pin bowling. And the core menu of Philly-style hoagies and cheesesteaks will live on, as will the " Lil' Petey" sandwich-eating challenge. Dig in: Taub tells Axios he's looking forward to expanding the offerings — with plenty of nostalgic nods to his favorite hometown Philly spots. A custom soda fountain inspired by Nifty Fifty's will turn out egg creams, floats and malts, which customers can spike with booze (also look for wine, Champagne and beer). Taub is working on a new pizza menu, as well as fun bar snacks for game days. Diners will also have a few lighter options for times when a huge Italian hoagie or braised beef brisket sandwich won't fly. Context: Taub says the move has been in the works for a while after their landlord decided to double the rent on the small, mostly takeout shop. "It would have shuttered our business overnight," he says. The landlord filed an eviction lawsuit earlier this year, seeking nearly $250,000 in unpaid rent and fees, which Taub tells Axios is erroneous, and that they've been "following legal counsel" since. Between the lines: Taub has been making his own breads and hoagie rolls for a year-plus — which, along with homemade pickles and sauces, sets Bub's apart. Now he's upping the game with a new Polin oven. "It's how Angelo's in Philly achieves that perfect crust and bronze color," he says. All of the homemade accoutrements will be available to take away. "I know Trader Joe's is right down the street, but I wanted people to be able to come home with a container of our marinara and have a nice dinner."
