Investing Experts Life after Mag 7
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Dec 4, 2025 Michael Kramer, an investment analyst with Mott Capital Management, shares insights on the current market landscape. He describes it as 'sideways with a lot of chop' and discusses the implications of a changing environment post-MAG7. Kramer highlights promising healthcare stocks influenced by AI advancements. He also delves into the paradox of the stubborn bond market and its effects on long-term yields. Additionally, he raises concerns about robotics investments amidst larger tech market corrections, emphasizing the importance of liquidity and market dynamics.
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Sideways Market With Rising Rotation
- The market has been trading sideways with elevated volatility since October, punctuated by rotation away from concentrated themes.
- Michael Kramer says liquidity shifts and AI spending are prompting investors to consider "life after MAG7."
Credit Markets Question Big Tech Spending
- Credit-default swaps for major techs like Oracle and Amazon are rising, signaling market concern about AI-driven capital spending.
- Kramer suggests rising CDS implies investors are pricing default risk if AI investments fail to deliver near-term returns.
Look Beyond Mega-Cap Tech
- Start reallocating attention beyond MAG7 by exploring sectors that could benefit from AI differently, such as healthcare.
- Kramer reports he has trimmed large-cap tech positions and rebuilt exposure into select healthcare names like UnitedHealth and Illumina.