Magnificent seven? For those who like to look back at history will remenber the nifty 50.We know how it ended.
Then we had the 1998-2000 .com era.We know how it ended.
then there was the housing buble of 2006-2007 were you just had to buy a house and you were garanty to get rich.
Today it's the mangificent seven.These 7 stocks are great , profitable and well managed.
With friday's rebalancing they now accout for 45% of the Nasdaq 100 instead of 55%.
While they are very good company, just like the nifty 50 were, trees don't grow to the sky
and one day(who knows when), valuation will come to more realistic levels.
when a major correction occur,SU like most company will probably see a drawdown but low valuation stocks will go down a lot less.
Cyclical stocks go up and down.And Su as been down and now, it just broke it's downside trend.
The risk/reward is now in the favor of the longs.
Being my biggest position and by far, i may have my pink glass on but that's the way i see it
and respect the one who see it differently.
Good luck to all