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All your Eggs In One Basket

Eggs In a Basket
All Your Eggs In One Basket

"The “Magnificent Seven” technology-centric stocks, which make up nearly 30% of the U.S. S&P 500 index, have been crucial to driving the market’s overall earnings growth due to their sheer size and influence. Without their contribution, earnings growth would have declined by 4% year-over-year."

So everything we see in the Markets right now is based on the earnings, the past earnings of these 7 companies, and mostly one, Nvidia, is pushing this latest tech market bubble. Here we go again... This is not the robust equity market I would be looking for to dump all my cash into, in fact, it's the complete opposite. Most if all these companies are showing a better bottom line, by laying off their work force, and saving money. People that have to pay rent and groceries, don't have any money, because of inflation, rent, gas, food, and housing costs. Only the 40 % of us with savings are getting even, as our GIC's, Bonds, and Equities are all on the rise.

And even this defies gravity. Bonds and Equitys are opposite sides of the scale, but not today. Which is why I have stated, now is the time to rebalance, load up on long GIC's at 5% to fund a cash cushion, or buy a new boat. Strike while the Iron is hot. We are at the top of a Market cycle that may have legs left, but may not. Stop thinking short term, look at the long term relationship of investing. Don't get caught in FOMO (Fear of Missing Out)

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