December 18, 2023 Investor Insights
Magnificent 7 Strike Again!
December 18, 2023
Enjoy this week's "Investor Insights," a weekly newsletter highlighting the financial news you need and providing tips and tricks to help you make better investment decisions.
- The Magnificent Seven stocks (Nvidia, Apple, Alphabet, Microsoft, Amazon, Meta, and Tesla) have swelled to represent about 30% of the S&P 500's market value. Together they now represent more market value than the UK, China, France, and Japan stock markets combined.
- Mortgage rates fell below 7% for the first time since August, as the U.S. economy is showing signs of cooling off. The 30-year fixed-rate mortgage fell for the seventh week in a row and averaged 6.95% as of Dec. 14. 2
- In a recent survey, 45% of investors said the 2024 Presidential Election will have a bigger impact on their retirement plans than the stock market’s returns. Additionally, 32% believe the U.S. economy could enter a recession within a year if their preferred political party does not win. 3
- The U.S. unemployment rate has remained below 4% for a record 22 consecutive months, marking the longest stretch since the late-1960s. Notably, the unemployment rate did not fall below 4% during the entire 1970s, 80s, or 90s. 4
Sources
- WSJ- "It's the Magnificent Seven's Market. The Other Stocks Are Just Living in It."
- Marketwatch - "Mortgage Rates Fall Below 7% for the First Time Since August"
- MFS- "Beyond the News"
- The Irrelevant Investor- "Animal Spirits: Dunking on Doomers"
*Past performance is not indicative of future performance
Disclosure: This information is furnished for the use of Glen Eagle Advisors, LLC, Glen Eagle Wealth, LLC, and their clients and/or contacts. It does not constitute the provision of investment advice to any person. It is not prepared with respect to the specific objectives, financial situation, or particular needs of any specific person. Investors reading this commentary should consult with their Glen Eagle representative/financial advisor regarding the appropriateness of investing in any securities or adapting any investment strategies discussed or recommended in this newsletter.
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