Investing Experts Magnificent 7 now the troubling 3, underscores market weakness
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Jul 2, 2025 Michael Kramer, from Mott Capital Management and Reading The Markets, dives into the complexities of the current market landscape. He discusses the surprising recovery in the first half of the year and expresses concerns over the 'Magnificent 7' tech stocks, now down to a troubling trio. Kramer shares insights on the potential of AI in healthcare, reflects on regrets regarding Amazon versus Nvidia, and critiques Tesla's market challenges. He emphasizes monitoring economic indicators, particularly unemployment, to navigate investment risks effectively.
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Market Driven by Few Giants
- The market recovery in the first half of the year was surprising and happened without resolution to underlying issues.
- Nvidia and a few tech giants now drive the market, showing a concentration not seen in decades.
From Magnificent Seven to Troubling Three
- Michael Kramer now views the 'Magnificent Seven' as 'The Troubling Three': Nvidia, Microsoft, and Meta.
- These three dominate the market, highlighting underlying weaknesses and concentration risks.
Choosing Amazon Over Nvidia
- Michael Kramer bought Amazon in October 2022 over Nvidia despite Nvidia's growth.
- He chose Amazon for valuation reasons and cloud opportunity, reflecting cautious sector selection amid volatility.