‘Say thank you and get out’: Why one top strategist says to dump Magnificent 7 stocks now |
‘Say thank you and get out’: Why one top strategist says to dump Magnificent 7 stocks now
If you’re an investor who has notched magnificent returns from the Magnificent 7, it might be time to ask: Is it time to get out? The answer is yes according to Rob Arnott. Arnott is the founder and chairman of Research Affiliates, a firm that oversees strategies for nearly $200 billion index funds and ETFs for the likes of Charles Schwab and Invesco. Overall, his predictions for the markets are grim: He warns that shareholders in U.S. big caps will make one-fifth the returns over the next 10 years they pocketed since 2016, and those meager gains will barely edge the CPI.
But U.S. big tech investors are a in for a special world of hurt, he predicts. When he digs into the difference in prospects between the S&P value and growth contingents, a big gulf emerges. The RA model predicts 4% annual gains in the former and a shockingly puny 1.4% in the latter, meaning the recent champs’s........