The rally in the stock market we’ve been experiencing this year has been driven primarily by a group of seven high-cap tech companies that some analysts have dubbed “the Magnificent Seven,” a reference to the 1960 Western film starring Yul Brynner.
Those seven stocks are: Nvidia Corp. (NVDA), Tesla Inc. (TSLA), Meta Platforms Inc. (META), Apple Inc. (AAPL), Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT), and Alphabet Inc. (GOOGL).
For those of you who remember the last great bull market starting around 2009, a few of these names might ring a bell. Back then, they were known as the FAANGs: Facebook (now Meta), Apple, Amazon, Netflix, and Google (now Alphabet). These stocks were responsible for bringing in some impressive gains for investors until the COVID-19 pandemic upended everything.
I mention this because we’re on the cusp of a new bull market that has a lot of parallels to the previous one, and these seven stocks are playing the same role that the FAANGs did back then.
So let me cut to the chase here: you want to own all seven of these. Not just because they’re leading the charge in pushing markets higher, but because many of them are at the forefront of the biggest tech trend of our time – the development and widespread adoption of AI technology.
If you owned these stocks going into 2023, you’re probably a pretty happy camper right now. But if you didn’t, and you’re worried you might have missed the boat, don’t worry – this week’s Buy This, Not That is for you.
Here’s why: while the overall trend is up, there will still be occasional dips. Like the last bull market, a lot of investors are very cautious and fearful, and we’re going to see surges of profit-taking that are going to knock these stocks down from time to time.
Those dips are your golden opportunities to buy. And in this video, I’m going to show you exactly what support levels you want to target to make sure you get the biggest bang for your buck with the Magnificent Seven.
As I said, one of the big factors driving these companies higher is their involvement in AI tech. It’s going to become part of every industry, and in fact, it’s already made its way to Wall Street. Almost 70% of institutional investors and traders are using some form of AI to help them make their trades.
— Shah Gilani
Source: Total Wealth