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MARK TO MARKET

Will stocks still deliver Magnificent returns?

One lesson from the Nifty Fifty is that growth stocks are often worth more than what Wall Street deems reasonable – if you have a long investment horizon

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Ben Paul

Ben Paul

Published Mon, Nov 20, 2023 · 05:00 AM
    • The Magnificent Seven group of stocks - comprising Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla - have a combined market capitalisation of US$11.8 trillion, and drove the S&P 500's 17.6 per cent advance this year.
    • The Magnificent Seven group of stocks - comprising Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla - have a combined market capitalisation of US$11.8 trillion, and drove the S&P 500's 17.6 per cent advance this year. PHOTO: REUTERS

    THE most significant piece of news for many investors this past week was that inflation in the United States continued to ease in October.

    The headlines triggered a plunge in US Treasury bond yields, a sell-off in the US dollar, and a nearly 2 per cent jump in the S&P 500 index on Tuesday (Nov 14).

    We may have seen this movie before, though. The market has been underestimating the strength of the US economy as well as the US Federal Reserve’s resolve to bring inflation back down to 2 per cent over the last two years.

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