A recent research report by Coatue suggests the reign of the Magnificent 7 (shown in the graph below) may be coming to an end and is about to be overtaken by an AI supercycle.
The first sign of this is the lower returns from these businesses in the last five years.
If indeed the Magnificent 7’s reign atop the investment universe is coming to an end, then what will replace them?
Coatue believes AI companies will occupy the next winner’s podium. These will include AI power companies, AI software, and AI semis.
“The super-cycle thesis would bring significant gains to the stock market through a different set of companies than what we have enjoyed over the last 5-10 years. That type of competition for investment dollars ultimately makes companies better, along with increasing the opportunity for returns for investors,” according to Anthony Pompliano of Professional Capital Management.
“Stocks may have experienced a historic rebound in Q2. Just don’t mistake that rebound for the end of the momentum. These higher prices are likely to create even higher highs. And the pessimists will still be crying while it all happens.”
To which we would add bitcoin as a part of any responsible portfolio.
Contact 80eight. If making or moving money (including bitcoin or stablecoins) is your game, we’ve got you covered. Let us guide you on your journey to debt-free prosperity.
.gif)
