Magnificent 7 is Still Outperforming
Nvidia, the best-performing large-cap stock last year, is up over 20% this year. Meta, Microsoft, and Google are around 5-8% higher. Amazon isn't pushing huge gains, but is still up over 2%.
The year started off strong, with healthcare, financial, and industrial companies outperforming. That quickly turned back to the 'Magnificent 7'. Of the 7, only two are currently underperforming the S&P 500: Apple and Tesla (not shown).
And the 5 that are outperforming are doing so by a significant margin. Nvidia, the best-performing large-cap stock last year, is up over 20% this year. Meta, Microsoft, and Google are around 5-8% higher. Amazon isn't pushing huge gains, but is still up over 2%.
To put these moves into perspective, an annualized 20% would equate to around a 240% one-year return if a 20% gain were to happen every month. A 5% monthly return, annualized, would be around 60%. Even a 2% return, annualized, would be 24%.
Over the last 10 years, Apple has moved on average 2% higher every month. So for the S&P 500 to almost match that is impressive, especially considering that Apple has significantly outperformed the S&P 500 over the last decade.
Another note is that on Friday, the S&P 500 finally hit a new all-time high of $4,840, after 746 days of remaining below the January 3rd, 2022, high.
Nvidia, Microsoft, Meta, and Apple have also surpassed their 2022 highs, some by a more substantial margin than others.
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