Goldman Sachs director Lee Coppersmith says shares of the Magnificent Seven could be poised for a recovery.
In his last prospectsCoppersmith compares the current market environment to the COVID-related downturn in March 2020.
“During that period, it actually revealed, much like today, that the market had lost confidence in those Mag 7 stocks as leaders. And so I would tell you that I think if you, you know, saw what happened then, obviously, post-COVID, obviously the re-emergence of those companies happened. And it was really a great opportunity to give those positive expressions, especially in those companies. Whether you did them outright. Or if you did them versus the rest of the market, right?
And so what we would say to clients today is that if you wanted to basically look at ways to increase your exposure to the broader market as a whole after a month of actually derisking, this again presents a very attractive opportunity for clients to use those expressions as a way to stay longer in the market as a whole.
Coppersmith says investors have not lost confidence in the artificial intelligence theme and are approaching AI with a dumbbell strategy.
“They want to own both the input into AI through the infrastructure. But they also want to own the output into the AI, which means the transportation companies, the infrastructure that then actually leads to clear productivity increases.”
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Featured image: Shutterstock/Andrey Burmakin