We believe US indices are now correcting the whole advance from their 2022/3 low; importantly, it shouldn’t scare investors. We saw it before in 2022, and we will see it again in the years ahead. The most crucial factor is to add incremental value to portfolios over the coming months, so we are well-positioned when the market finds a low, hopefully sooner rather than later. This was our playbook during COVID and it set us up for strong returns on the other side.
However, we note that the US Big Tech stocks have led the decline after topping in late 2024, and they will likely lead any recovery.
- We are expecting the “Mag Seven” to test its August lows, now only ~5% away.
We are neutral towards the Magnificent Seven short-term
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