Dow Jones weaken, so what to fear? Ahbenheimer strongly believes that the bull market for the seven tech giants in the US stock market is not over.
Despite the continuous weakness of the Dow Jones Industrial Average, the investment bank Oppenheimer believes that the overall outlook for large-cap tech stocks remains constructively optimistic.
Notice that, despite the continued weakness of the Dow Jones Industrial Average (DJI), the investment bank O'Brien Authority defaults that the overall outlook for mega-cap tech stocks remains constructive optimistic, especially within the "Big Seven" tech giants.
The institution points out that as this sector attempts to break through the resistance level that has suppressed gains for about seven months, the technical momentum of some of the largest companies in this camp is showing signs of improvement.
Analysts at O'Brien Authority state that the divergence between the Dow and leading tech stocks in recent weeks indicates that while more cyclical sectors in the market are facing pressure, investors' appetite for growth stocks remains strong. The institution emphasizes that the relative performance trend of some mega-cap stocks is strengthening, suggesting that the leadership momentum within the tech sector may continue to expand in the coming months.
As part of their portfolio strategy, O'Brien Authority states that after significant increases in this camp, they are considering reducing overweight positions in some stocks to a more standard "hold" ratio. However, the institution is not looking to decrease their overall exposure to this sector, but rather recommends reallocating funds to stocks within the "Big Seven" that have seen relatively smaller gains (less valuation expansion), specifically mentioning Apple Inc. (AAPL.US), NVIDIA Corporation (NVDA.US), Alphabet (GOOGL.US), and Amazon.com, Inc. (AMZN.US).
As of the beginning of the year, Apple Inc. has risen by 10.4%, NVIDIA Corporation by 20.8%, Alphabet by 25.3%, and Amazon.com, Inc. by 14.4%.
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