Core Viewpoint - The Roundhill Magnificent Seven ETF (MAGS) has experienced a decline of approximately 1.5% as of Wednesday, indicating a challenging start to 2026 for the previously dominant mega-cap tech stocks [1] Group 1: Performance of the Magnificent Seven - Five out of the seven constituents of the Magnificent Seven are currently in the red, with Nvidia, Apple, Microsoft, Meta, and Tesla all showing declines, while only Alphabet and Amazon have remained positive [2] - MAGS has seen inflows of $91.25 million year-to-date, a 43% increase from the same period last year, but has still underperformed with a decline of about 2.3% in 2026, compared to the group's average decline of roughly 1.6% [3] Group 2: Market Context - The S&P 500 index has only increased by about 0.7% this year, highlighting the heavy reliance on a few mega-cap stocks that constitute over 35% of the index's total weighting [5] - The Invesco S&P 500 Equal Weight ETF has outperformed, showing a year-to-date increase of 3.4%, indicating a different market dynamic when excluding the concentration of mega-cap stocks [5] Group 3: Sector Rotation and Future Outlook - There is a noticeable rotation from growth-heavy tech stocks to value stocks, influenced by the Federal Reserve's cautious stance on interest rate cuts, with the Vanguard Value ETF gaining about 7% since mid-October [6] - Some strategists view the recent pullback in mega-cap tech as a temporary pause rather than a significant downturn, with expectations that AI-related companies will continue to drive substantial earnings growth for the S&P 500 [7] - Technology sector profits are forecasted to increase by more than 25%, indicating potential for recovery despite current challenges faced by MAGS [8]

Group 1 - Investors are shifting focus from technology stocks to industrial, healthcare, and small-cap companies, anticipating a broader market rally [1][2] - The S&P 500 has increased over 90% since the bull market began more than three years ago, driven primarily by tech stocks like Nvidia, Alphabet, and Broadcom [1] - Since the end of October, industrial, healthcare, and small-cap stocks have outperformed the S&P 500, while the tech sector has seen a decline [2][5] Group 2 - There is optimism for a broadening of market leadership in 2026, with expectations of solid profits across various sectors [3] - The equal-weight version of the S&P 500 has risen over 5% since the end of October, outperforming the standard S&P 500, which has only increased by 1% [6] - Concerns over high tech valuations and the sustainability of AI investments have prompted investors to explore alternative sectors [2][5]

Core Insights - Investors are increasingly viewing energy and power providers as compelling opportunities to gain exposure to the AI theme, according to BlackRock's 2026 Investment Directions report [1][4] - A significant 54% of survey participants identified energy providers as the most attractive investment related to AI, while 37% pointed to infrastructure and only 20% favored U.S. mega-cap tech giants [2] - The survey indicates that while investors remain optimistic about AI, they are seeking diversification beyond traditional tech stocks, with a focus on the broader ecosystems supporting AI [3] Industry Trends - The demand for electricity to power data centers is expected to surge, with Goldman Sachs projecting a 175% increase in data center power demand by 2030 compared to 2023 levels, equivalent to adding another Top 10 power-consuming country [6] - The reliability of power and water is seen as a multi-year investment theme due to rising demand, aging infrastructure, and the need to adapt to extreme weather events [7] - BlackRock emphasizes the importance of managing risks associated with mega-cap and AI exposure while capturing differentiated upside opportunities as the earnings outlook for the broader S&P 500 is expected to catch up to the Magnificent Seven by 2026 [5]

Core Viewpoint - American investors are increasingly concerned about a potential recession, overheated stock valuations, and the reliance on AI spending to sustain the economy and markets [1][2] Group 1: Economic Outlook - Goldman Sachs' wealth management unit reassures clients that the outlook for the US economy and stock market is positive, stating that many investor concerns are exaggerated [3][4] - The probability of a US recession is estimated at 25%, down from 35% the previous year, with expectations for continued economic expansion and strong earnings growth for the S&P 500 [5] Group 2: US Investment Landscape - The US is still viewed as the leading destination for global investors, with Goldman Sachs emphasizing that the country’s economic wealth, labor productivity, and capital markets are unmatched by other economies [11][15] - Despite political and tariff uncertainties, foreign investment in the US has rebounded, contradicting claims of capital flight [15] Group 3: AI Investment Impact - Goldman Sachs argues that the narrative of the US economy's fragility due to AI investment is overstated, with AI-related spending contributing only 0.1% to GDP growth in 2025 [20][21] - The firm contends that the performance of the S&P 500 is not solely dependent on AI and the so-called "Magnificent Seven" tech stocks, asserting that other sectors also show respectable earnings growth [26][27] Group 4: Market Valuations - While acknowledging that S&P 500 valuations are high, Goldman Sachs does not foresee a market crash, predicting a 7% total return and 10% earnings growth for 2026 [31] - The firm distinguishes current market conditions from past bubbles, asserting that today's tech companies have strong profit margins justifying their valuations [35][36] Group 5: Concerns in Other Assets - Goldman Sachs identifies bitcoin as a bubble, expressing skepticism about its value and warning of potential steep drawdowns [41] - The report also highlights concerns regarding gold prices and generative AI companies, suggesting that some valuations in these areas may be unsustainable [46][48]

Core Viewpoint - IREN Limited has garnered investor interest following an upgrade from H.C. Wainwright, reflecting confidence in its AI-driven growth and strategic partnerships [1][6] Financial Performance - IREN's stock price is currently at $50.59, showing a slight increase of 0.52% today, with fluctuations between $49.82 and $51.84 [4] - The company has experienced a significant price range over the past year, with a high of $76.87 and a low of $5.13, indicating market volatility [4] - IREN has a market capitalization of approximately $14.34 billion and a trading volume of 18.47 million shares, positioning it as a notable player in the tech industry [5] Growth Projections - IREN aims for $3.4 billion in annualized AI cloud revenue by the end of 2026, supported by multi-year contracts and a partnership with Microsoft [2][6] - Despite a recent 17% decline in stock price, IREN is still rated as a 'Strong Buy' due to its growth potential [2] Valuation Metrics - The company trades at a forward price-to-sales ratio below 5 and a fiscal year 2028 price-to-earnings ratio of 16, suggesting an attractive valuation compared to peers [3][6]

Group 1 - The large-cap tech sector was the primary driver of stock market gains in 2025, with investors heavily investing in AI despite significant capital expenditure intentions from companies [1] Group 2 - Gary Alexander has extensive experience in covering technology companies and has been a contributor to Seeking Alpha since 2017, providing insights into industry trends [2]

Group 1 - The large-cap tech sector was the primary driver of stock market gains in 2025, with investors heavily investing in AI despite significant capital expenditure intentions from companies [1] - There is a strong enthusiasm among investors regarding future growth opportunities in the tech industry, particularly in AI [1] Group 2 - Gary Alexander has extensive experience in covering technology companies and has been a contributor to Seeking Alpha since 2017, providing insights into current industry themes [2]

Core Insights - The analyst has over a decade of experience researching various industries, including commodities like oil, natural gas, gold, and copper, as well as technology companies such as Google and Nokia, and emerging market stocks [1] Group 1: Company Focus - The analyst has a particular interest in covering metals and mining stocks, while also being comfortable with other sectors such as consumer discretionary, consumer staples, REITs, and utilities [1] Group 2: Research Methodology - The transition from a personal blog to a value investing-focused YouTube channel has allowed the analyst to research hundreds of different companies, enhancing the quality of content provided to readers [1]

Summary of Global Equity Road Ahead Industry Overview - **Global Equity Market**: The report discusses the outlook for global equities, projecting continued growth into 2026 with a target of approximately 10% upside for the MSCI AC World Index by year-end 2026 [1][6]. Core Insights and Arguments - **Earnings Growth**: Global EPS growth is expected to accelerate to +14% in 2026, up from +11% in 2025. The US and Emerging Markets (EM) are projected to maintain double-digit EPS growth, while Europe ex-UK is anticipated to see the most significant acceleration from +1% in 2025 to +10% in 2026 [3][13]. - **Valuation Concerns**: Current valuations are high, with the MSCI AC World trading at a forward PE of approximately 19x, placing it in the 90th percentile compared to historical data. The US market is the most expensive at 22x, while EM is at a 92nd percentile multiple [4][24]. - **Market Themes**: Key themes include the desire for diversification into international equities, the impact of AI on earnings, and the expectation of a "Goldilocks" economic environment characterized by stable growth and low inflation [5][51]. Additional Important Content - **Sector Preferences**: Preferred sectors include Technology, Financials, and Health Care, while Consumer sectors are underweighted. The report highlights the importance of sector selection over regional allocation [6][66]. - **Emerging Markets Outlook**: EM is expected to deliver the strongest EPS growth among major regions at +17% for 2026, supported by fiscal spending and AI-related growth [87]. - **US Market Positioning**: The US remains neutral in allocation due to high valuations, but there is a focus on growth sectors, particularly in Technology [61][72]. - **European Market Dynamics**: Europe ex-UK is positioned as an overweight due to expected fiscal support and improving economic data, with a focus on cyclical sectors [58][80]. - **AI Investment Trends**: AI-related capital expenditures are projected to grow at 45% annually, indicating a significant opportunity for growth in this sector [44][46]. Conclusion The report presents a cautiously optimistic outlook for global equities, emphasizing the importance of earnings growth, sector selection, and the potential impact of macroeconomic conditions on market performance. The focus on diversification and the implications of AI developments are critical for investors looking to navigate the evolving landscape of global equities.

Wall Street has for the most part bounced back since falling at the opening bell after an investigation into the current chair of the Federal Reserve raised questions about the independence of the central bank.The pan-European Stoxx 600 closed 0.2pc higher, with silver producer Fresnillo among its top risers after the white metal reached a new high earlier on Monday.Germany’s Dax jumped almost 0.6pc at the close, hitting a fresh record of 25,405.34 and extending a 10-day rally.European stocks ended the trad ...