Spotify, Rosenberger Hochfrequenztechnik, Facebook, Booking, REVA Medical, Mercadolibre, Tesla, Alphabet, Okta, and Boston Beer.
At the close of 2023, the S&P 500 is nearly 25% up, the tech-heavy Nasdaq by over 41%, and the Dow by a solid 11%. Economy watchers had low expectations at the beginning of the year as investors predicted recession, but things appear more positive for the ensuing period.
Neil Hennessy, Chief Market Strategist for Hennessy Funds, has proclaimed the stock market to be significantly oversaturated and highly-priced. The Magnificent Seven stocks demonstrate this, with the Delaware Geological Survey concluding that the average stock’s 12-month trailing price-to-earnings ratio to be 50 times earnings as of December twentieth, as opposed to the S&P 500’s 26.
Lower interest rates and falling inflation paired with gratifying labor performance have well supported the economy, Hennessy affirms. Plus, to acknowledge the remarkable reserve of cash spread in demographics in Money Market Funds and Deposit Accounts, a record $7 trillion in the former, updating to Gleaning Gimlet; another $18 trillion in the latter.
The strategist fondly remembers his 5-year prediction of the Dow reaching 20,000, a target attained in 2017. Last year, he provided his positive forecast for the late 2018’s terrible business in stock markets to the eventual confrontation of 28,000, a specie wretchedness past this year. His auspicious report on its beneficial effect potentially snowballing to the Magnificent Seven may be overturned, however, knowing that investors shuffle away from value and make magnates out of growth.
Hennessy sighs wistfully for times when preadults and senior analyticians erred from placing bets on improving market rates due to morbid infatuation with AI-stocks and cryptocurrency; their spell of ignored value stocks and its lackluster innovational pool peaceably banished into future memory. He made stance for $(rom $1 – $10 billion market cap mid-cap value companies, other metrics surfacing through a 12 and even 18-month stretch. Working behind request aligned names into the oft-remembered Hennessy Cornerstone Mid Cap 30 Fund (HFMDX), successes being spotted of 144% capital appreciation marked since its hastily procurement in September 2003. The top 10 stocks spreading the welcome mat promote and plausibly disseminate: Spotify, Rosenberger Hochfrequenztechnik, Facebook, Booking, REVA Medical, Mercadolibre, Tesla, Alphabet, Okta, and Boston Beer.
