Core Viewpoint - The article discusses the historical performance of large-cap versus small-cap stocks, emphasizing that while large-cap stocks, particularly the "Magnificent 7," have dominated returns in the past decade, this dominance may not be permanent and could present an opportunity for small-cap investments [1][2][12]. Historical Performance - Over the last decade, the S&P 500 gained nearly 300%, with the Magnificent 7 stocks gaining 2585%, while small-cap stocks only gained 134% [1]. - The dominance of large-cap stocks is highlighted by their contribution of about one-third of the total gains of the S&P 500 [1]. Behavioral Bias and Asset Allocation - Investors have shown a tendency towards home country bias, favoring large-cap stocks due to their media coverage and perceived glamour [3]. - Since 2015, the average allocation to small-cap stocks in mutual funds and ETFs has decreased from 12% to 8%, indicating a potential over-reliance on large-cap stocks [2]. Importance of Market Cap vs. Style - The article explores whether it is more important for investors to focus on market cap or investment style, revealing that consistently choosing the correct market cap has historically yielded better performance than style selection [12]. - A study from January 1979 to August 2025 shows that large-cap stocks gained 12.3% per year compared to 11% for small-cap stocks, with a tracking error of 10% [8]. Valuation Trends - A decade ago, small-cap stocks traded at a PE multiple of 27x earnings compared to 19x for large-cap stocks; this valuation has since flipped, with small stocks now at 19x and large stocks at 27x [14]. - Small-cap earnings have grown by 9.5% per year, while large-cap earnings have grown by 8%, suggesting that small caps may now be undervalued relative to large caps [14]. Conclusion and Recommendations - The article suggests that investors may be under-allocated to small-cap stocks and over-exposed to expensive large-cap stocks, recommending a reconsideration of asset allocation strategies before potential market shifts occur [14].

You can just ask Google to break it all down and even ask follow ups. So you can keep up with every twist, turn, and sibling rivalry. Spoiler alert, it doesn't end well. ...

(Bloomberg) -- The US Supreme Court declined a chance to open social media companies to lawsuits over content recommended by their algorithms, turning away an appeal that accused Meta Platforms Inc.’s Facebook of radicalizing a man who killed nine South Carolina churchgoers. The rebuff ends a lawsuit filed by the daughter of Reverend Clementa Pinckney, one of the nine people murdered by white supremacist Dylann Roof in 2015 at a historically Black church in Charleston, South Carolina. Two lower courts had ...

Industry Trend - Self-driving cars are becoming increasingly common [1] - Google's Moonshots is ahead of the curve by sticking to their fail fast mantra [1] Innovation and Technology - Google's Moonshots @astroteller will share upcoming plans [1]

Core Insights - Alpha Vantage's MCP server provides a fast and comprehensive way to access structured market data, enabling real-time analysis and insights without complex coding requirements [2][5][41] Company Analysis - The MCP server allows for the retrieval of various financial metrics, including daily OHLCV data, fundamentals, forex, crypto pricing, and macroeconomic indicators, all in a clean and structured format [8][9] - The server's efficiency is highlighted by its ability to return normalized metrics, avoiding parsing issues and ensuring smooth data retrieval [9][40] - The analysis of Apple revealed a modest revenue growth of +2.0% YoY, indicating market saturation and mature phase dynamics [21][26] - Apple's gross margin improved from 43.3% in 2022 to 46.2% in 2024, driven by pricing power and cost efficiency [23][21] - In a valuation comparison, Apple was deemed overvalued due to stretched P/E and PEG ratios, while Google was considered undervalued, and Microsoft was labeled fairly valued [25][41] Industry Trends - The MCP server's capabilities enable deeper financial analysis, allowing for multi-year comparisons and trend reasoning, which are essential for investment decision-making [17][39] - The ability to generate visual representations of data, such as overlay charts, enhances the understanding of market dynamics and investor sentiment [30][32] - The analysis of stock price movements in relation to net income and earnings reports provides insights into market reactions and potential future trends [34][36]

Group 1 - Investing in dividend stocks is beneficial for young investors, allowing for significant returns through reinvestment and compounding over time [1] - Dividend stocks can grow and generate passive income, potentially covering living expenses in the future [1] Group 2 - Five notable companies are recommended for young investors to buy and hold for the next 25 years due to their strong business models and growth prospects [2] Group 3 - Alphabet is a leading technology company with a focus on AI, cloud computing, and autonomous vehicles, and has recently initiated a dividend with potential for growth [4][5] - Apple is a highly profitable company with a vast ecosystem of devices and services, generating approximately $100 billion in free cash flow annually and consistently raising its dividend for 12 years [6][7] Group 4 - The technology, finance, and retail sectors are expected to experience continued growth, making these five stocks suitable for anchoring a young investor's portfolio for decades [8]

Key Points AI spending benefits multiple companies on this list. There isn't nearly enough AI computing capacity to support current AI demand. 10 stocks we like better than Nvidia › CNBC's Jim Cramer popularized the "Magnificent Seven" term to describe a group of stocks that capture which big tech stocks lead the market. It's made up of: Nvidia (NASDAQ: NVDA) Microsoft (NASDAQ: MSFT) Apple (NASDAQ: AAPL) Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) Amazon (NASDAQ: AMZN) Meta Platforms (NASDAQ: MET ...

Key Points Investors are starting to realize that Google Search isn't going away. A judge ruled that Alphabet doesn't need to be broken up. Alphabet is still one of the cheapest big tech stocks on the market. 10 stocks we like better than Alphabet › Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) had an incredible run during September. Its stock rose 14% throughout the month, which is a huge move considering that Alphabet is around a $3 trillion company. Although last month was a strong run for Alphabet, ...

The burgeoning artificial intelligence boom, driven by tech titans like Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), Meta Platforms Inc. (NASDAQ:META), Microsoft Corp. (NASDAQ:MSFT), and Amazon.com Inc. (NASDAQ:AMZN) relying heavily on Nvidia Corp. (NASDAQ:NVDA) powerful GPUs, could lead to a dramatic doubling of electricity rates within the next five years.Chamath Warns Of Doubling Electricity Costs Because Of AIThis stark warning comes from venture capitalist Chamath Palihapitiya, as highlighted in a recen ...

When I last covered Alphabet, Inc. (NASDAQ: GOOG )(NASDAQ: GOOGL ) on April 1st, 2025 (with an upgraded rating) in my article "Alphabet: Entering The Buy Zone”, the stock was falling quite dramatically and posting losses ofThe Income Machine is driven by market analysis from strategies covering more than two decades of trading experience successfully navigating through a broad range of asset classes. I am @PROSTOCKMARKETS on YouTube, which is where I post daily video updates for all of my trades and define ...