The performance of the Magnificent Seven
Debra Slabber, Director: Portfolio Specialist, Morningstar South Africa joins CNBC Africa for this discussion.
Fri, 22 Sep 2023 11:16:27 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The Magnificent Seven companies, including tech giants like Alphabet, Amazon, Apple, and NVIDIA, have been driving market returns in 2023 and are viewed as key influencers in the market.
- Investors need to be cautious about the valuations of these companies, regulatory risks, and the potential downsides of blindly allocating to passive funds due to the narrow market concentration.
- Despite the potential for growth and innovation, investors must ensure that they are not overpaying for these companies and are aware of the risks associated with investing in highly valued tech giants.
Investors around the world have been closely eyeing the performance of the so-called Magnificent Seven companies, including tech giants like Alphabet (Google), Amazon, Apple, Meta (Facebook), Microsoft, and NVIDIA. These companies have been driving market returns in 2023 and are often used as a reference point for many investors. Debra Slabber, Director and Portfolio Specialist at Morningstar South Africa, warns that while these companies have solid competitive advantages and are at the forefront of the artificial intelligence hype, it's essential for investors to tread carefully and not get caught up in the hype. Slabber highlights the risks associated with investing in these companies, including valuation concerns, regulatory risks, and the dangers of blindly allocating to passive funds. She emphasizes the importance of ensuring that the price paid for these companies is fair and justified to avoid potential losses or being caught in a bubble. Despite the allure of the Magnificent Seven, Slabber cautions investors to assess the risks and make informed decisions when considering these tech giants for their portfolios.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.
