Financial expert: Buying opportunity expected in the stock market - but not where investors expect it

Financial expert: Buying opportunity expected in the stock market - but not where investors expect it

According to a report by www.wallstreet-online.de,

According to investment chief Richard Bernstein, the stock market is facing a once-in-a-lifetime opportunity - and not in an area of ​​the market that investors might expect. Bernstein predicts that mega-cap stocks will lose value, while lesser-known stocks could see big gains, particularly small-cap and mid-cap stocks.

This forecast is based on the assumption that narrow market leadership by a few large companies is not justified and has extreme valuations. Richard Bernstein Advisors expects companies' earnings to rise across the market, not just limited to the so-called Magnificent Seven stocks.

Bernstein predicts that mega-cap stocks could lose 20 to 25 percent of their value, while the Russell 2000 index could rise 20 to 25 percent over the next decade. This increase is supported by robust economic growth and increasing corporate profitability.

The forecast is based on data from the MSCI All Country World Index, which shows that corporate profits have bottomed out in 2023 and will rise again by 2024.

How www.wallstreet-online.de reports, Bernstein points out that there are more than just seven growth stories in the global stock market and that the dominant mega-cap stocks are not necessarily the best growth themes.

Given these predictions, investors may want to rethink their portfolios and consider investing in cheaper areas of the market such as small-cap and mid-cap stocks. It remains to be seen whether these predictions come true, but it is worth keeping an eye on developments on the stock markets.