'Magnificent 7' Tech Bubble To Burst With 'Higher-For-Longer' Rates, Top Wall Street Analyst Warns
Portfolio Pulse from Piero Cingari
Bank of America's Chief Investment Strategist, Michael Hartnett, warns of a potential tech bubble burst due to higher-for-longer rates. He points out the waning excess liquidity on Wall Street as a crucial factor that could impact tech stocks. Hartnett highlights the 'Magnificent 7' tech stocks - Apple, Microsoft, Alphabet, Amazon, Meta Platforms, NVIDIA, and Tesla - which have risen 93% YTD and represent 28% of the S&P 500 market cap. Bank of America maintains a bearish outlook on stocks for 2023, projecting a potential next stop for the S&P 500 Index at 4,200 points.
August 25, 2023 | 1:44 pm
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NEGATIVE IMPACT
Apple could be impacted by the potential tech bubble burst due to higher-for-longer rates.
As one of the 'Magnificent 7' tech stocks, Apple's stock price could be negatively impacted by the potential tech bubble burst due to higher-for-longer rates.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
Amazon could be impacted by the potential tech bubble burst due to higher-for-longer rates.
As one of the 'Magnificent 7' tech stocks, Amazon's stock price could be negatively impacted by the potential tech bubble burst due to higher-for-longer rates.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
Alphabet could be impacted by the potential tech bubble burst due to higher-for-longer rates.
As one of the 'Magnificent 7' tech stocks, Alphabet's stock price could be negatively impacted by the potential tech bubble burst due to higher-for-longer rates.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
Meta Platforms could be impacted by the potential tech bubble burst due to higher-for-longer rates.
As one of the 'Magnificent 7' tech stocks, Meta Platforms' stock price could be negatively impacted by the potential tech bubble burst due to higher-for-longer rates.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
Microsoft could be impacted by the potential tech bubble burst due to higher-for-longer rates.
As one of the 'Magnificent 7' tech stocks, Microsoft's stock price could be negatively impacted by the potential tech bubble burst due to higher-for-longer rates.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
NVIDIA could be impacted by the potential tech bubble burst due to higher-for-longer rates.
As one of the 'Magnificent 7' tech stocks, NVIDIA's stock price could be negatively impacted by the potential tech bubble burst due to higher-for-longer rates.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
Tesla could be impacted by the potential tech bubble burst due to higher-for-longer rates.
As one of the 'Magnificent 7' tech stocks, Tesla's stock price could be negatively impacted by the potential tech bubble burst due to higher-for-longer rates.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100