Analysis: Magnificent Seven - changing of the guard among the top performers 2023/2024

Analysis: Magnificent Seven - changing of the guard among the top performers 2023/2024

According to a report from www.finanzen.net, the “Magnificent Seven” have significantly influenced the US stock markets in 2023 and are therefore responsible for about three-quarters of the S&P 500's total gains. However, a changing of the guard is expected to occur in 2024, with some stocks leaving the group and being replaced by others. Analysts expect Meta Platforms and Tesla to leave the group, while Berkshire Hathaway and ExxonMobil are expected to join the group. Stocks are valued based on their predicted price performance and experts disagree about which stocks will retain their place in the group.

Investor's Business Daily expects NVIDIA, Amazon, Alphabet, Apple and Microsoft to retain their places in the group. NVIDIA is expected to be the largest contributor to the S&P 500's appreciation, followed by Microsoft, Amazon, Alphabet and Apple. The experts at TD Cowen even call NVIDIA the “best idea” for 2024. On the other hand, Meta Platforms and Tesla are expected to lose their place in the group and be replaced by Berkshire Hathaway and ExxonMobil.

There is disagreement about whether Meta Platforms will actually leave the group, while Tesla's exit is considered more likely due to challenges in the market environment for electric car makers. Analysts believe that the era of the previous Magnificent Seven is over and that the market environment will change in the future. It is therefore important to closely follow developments in the group in order to be prepared for changes in the stock market.