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Mag 7 and software could boost portfolio in second half: ETF Action
CNBC • • business
Key Points:
- Mike Akins, co-founder of ETF Action, advises investors to increase exposure to software, cloud computing, and disruptive technology sectors that have underperformed compared to major AI stocks but have strong growth potential.
- Akins highlights that many software and cloud companies have dropped from high valuations but remain essential for daily work, presenting attractive investment opportunities.
- He points to the "Magnificent Seven" index—comprising Nvidia, Microsoft, Alphabet, Amazon, Meta, Apple, and Tesla—as a promising catch-up trade for the year's second half after underperforming the Nasdaq-100 in the first half.
- Early second-half trading shows the Magnificent Seven index gaining 5%, outperforming the Nasdaq-100, which declined by 1%, indicating potential momentum for these large-cap stocks.
- Small and mid-cap stocks, particularly those in the Russell 2000 index, have performed strongly this year and are expected to continue growing due to earnings growth and valuation multiple expansions.
