"It's been an eventful month for the Magnificent Seven and the state of the AI trade, to say the least. With a painful correction sweeping through the tech scene, but some soothing words from a Fed official, it seems like there's still a pretty good chance that the S&P 500 exits the month of November with gains intact, especially as some of the Magnificent Seven players start shining bright again."
"Though it's too early to say where stocks head back after getting momentarily knocked to the canvas over extreme levels of AI bubble discussion among various pundits, including tech leaders, money managers, banks, and seemingly everyone else, I do think that investors shouldn't discount the Magnificent Seven group, even as members of the cohort move in differing directions again. Alphabet has been shining bright. If its glorious rally continues, it might finish 2026 as the world's largest company"
November saw a sharp tech correction amid heavy AI speculation but some calming comments from a Fed official. The S&P 500 still has a strong chance to finish the month with gains as several Magnificent Seven stocks recover. Alphabet led gains, sidestepping the AI pullback after Berkshire Hathaway took a notable stake. Berkshire’s cash-heavy, value-oriented backing of Alphabet undermines a simplistic AI-bubble thesis centered on speculative names. Timing an AI bubble equates to timing the market and may underperform a buy-and-hold strategy. Early signs of the AI correction healing make aggressive exits or short positions riskier for investors.
Read at 24/7 Wall St.
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