Loading ...The Economist …
… wants us to look past the magnificent 7 of the S&P.
Now I am confused. “They” told me that when the Economist touts gold in its headlines, then it will be the time to start selling or completely get out of gold and PM shares.
So, if The Economist tells us to look at S&P 493, does it mean that a huge ride up is going to happen in the magnificent 7?
GL
No. While your logic to think contrarian is correct, the Mag 7 have just had a big move up over the last 9 days and the NASDAQ 100 of which they are the leaders, is up 40% YTD. If one were to buy the 493 and short the 7 the mean reversion would work in your favor.(Not a recommendation just a thought exercise.) Buying the SQQQ is a better way to take advantage of the fact that 12 months from now the NASDAQ 100 will come back to earth, especially the Mag 7.