Citi declares the Magnificent Seven dead as a stock market framework

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โดย TheStreet·Read original
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Citi has declared the Magnificent Seven dead as a construct for assessing large-cap growth dynamics. Scott Chronert, the bank's head of US equity strategy, said it is time to refocus away from the term, noting that the Roundhill Magnificent Seven ETF is up just 1% this year while the S&P 500 has gained 9%. Citi is replacing the framework with a growth cluster of companies that have contributed most to S&P 500 earnings and are directly influenced by AI, spanning six industries and roughly half of the index's market cap. That growth cluster gained 24.7% in the second quarter versus 14.9% for the S&P 500, and its price-to-earnings-to-growth ratio is at a 15-year low. The bank emphasized that AI-driven earnings are a theme with more members than the original seven, and sticking to the familiar mega-cap names is causing investors to miss significant earnings contributors.

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