Non-Mag 7 equities are a ‘once in a generation opportunity’

The “Magnificent Seven” Big Tech stocks are aiming to recoup losses in Monday’s trading session after last week’s global sell-off which significantly impacted the sector. As investors prepare for a week packed with economic and inflation data releases, questions arise about the implications for broader market trends (^DJI, ^IXIC, ^GSPC). Richard Bernstein Advisors CEO Richard Bernstein joins Catalysts to share his market outlook during this busy period for Wall Street. Bernstein identifies the upcoming Consumer Price Index (CPI) data as a key focus for investors this week. However, he emphasizes his “fundamentally-driven” approach rather than being “event-driven,” suggesting that the July CPI report won’t significantly alter his market positioning. “I think the biggest story for true fundamental investors is not so much inflation, it’s not actually the Fed, it’s actually earnings,” Bernstein states. He highlights that small caps (^RUT) and emerging markets are projected to have stronger earnings growth than the Magnificent Seven in the second half of the year, calling this “the big story that is going unnoticed right now.” Bernstein likens the current stock market dynamics to “a see-saw.” On one side are the Magnificent Seven stocks, while “everything else in the global equity markets” is on the other. He suggests that the opportunities lie in the non-Magnificent Seven side, describing it as a “once in a generation opportunity.” For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Angel Smith