Why the other 493 stocks in the S&P 500 may be about to shine

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Magnificent Seven News

Amazon,Market Domination,Earnings Growth

The S&P 500 has been on a tear, largely due to the 'Magnificent Seven' - Amazon (AMZN), Apple (AAPL), Alphabet (GOOG,GOOGL), Nvidia (NVDA), Meta (META...

) which make up about a third of the value of the index. With some bullish sentiment on Wall Street gaining momentum, will the other 493 companies have their moment in the sun?

Let's welcome in Oung Kwan B of a Securities us equity strategist, Oung and it's good to see you, you know. Despite trading at, you know, such a big premium versus the other 493 then I think that should really be the catalyst for the rotation to take place.So I think it's for this quarter, I think it's going to be more driven by uh margins rather than helpline growth.It typically starts with cost cutting and margin improvement companies really trying to do what they can control and then demand starts to improve.

So whereas volume demand obviously has very strong correlation to earnings growth, so I think going forward, it's really going to be a lot, it's really going to be about demand rather than inflation or pricing. Like I said, companies have gotten so good at managing expectations and unless they see great reasons to raise their numbers, they're probably going to be on the side of being too cautious.

 

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