How The Magnificent 7️⃣ Are Forcing The Market Back Into Correction Territory
The author F. Scott Fitzgerald once wrote that "the test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function." This concept, often referred to as "cognitive dissonance," is something all investors must continually grapple with. This is because financial markets can swoon seemingly without reason and, in the worst case, in a way that appears to contradict underlying fundamentals. In these situations, investors can either try to justify these market swings or recognize that they are likely to be temporary. How is this relevant to investors in today's market and economic environment?
We discuss in this episode of The Wealth Effect Podcast:
📈 Magnificent 7 Stock Returns
📊 Q3 GDP Growth Components
📉 Stock Market Pullbacks
Matt Faubion, CFP®
Founder - Wealth Manager
Show notes and charts:
A small group of stocks has driven market swings this year
The economy is stronger than anticipated
Market corrections occur regularly
The bottom line: The Magnificent 7 stocks, responsible for much of the market's year-to-date gains, have started to stumble as higher interest rates impact the markets. And despite many signs of economic strength and the stock market not having returned to its previous all-time high, it recently fell into correction territory.
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📊 COMPLIMENTARY PORTFOLIO REVIEW
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