Stock Market's 'Once-In-A-Generation' Opportunity Is Near, Says Bernstein Analyst: 'You Are Going To See A Bear Market'
Portfolio Pulse from Benzinga Neuro
Richard Bernstein Advisors (RBA) suggests a 'once-in-a-generation' investment opportunity is approaching due to a potential shift in the stock market. RBA's Deputy CIO, Dan Suzuki, warns of a bear market for large-cap tech stocks, with a deceleration in corporate earnings expected for major tech companies. Only three of the 'Magnificent Seven' tech stocks are projected to have over 25% earnings growth in 2024. Meanwhile, sectors like small caps, industrials, energy, and emerging markets could see earnings acceleration. Extreme valuations and investor concentration in mega-cap tech firms may lead to a market shift away from these stocks.
January 22, 2024 | 2:45 am
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NEGATIVE IMPACT
Apple Inc may face a bear market along with other large-cap tech stocks, with a deceleration in earnings growth expected.
As one of the 'Magnificent Seven', Apple's stock may be impacted by the predicted market shift and deceleration in earnings, leading to a potential short-term price decline.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Amazon.com Inc may see a bear market as part of the broader tech stock downturn, with slower earnings growth anticipated.
Amazon, included in the 'Magnificent Seven', may experience a bear market due to the expected earnings deceleration, which could lead to a short-term negative impact on its stock price.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Alphabet Inc could enter a bear market with other tech giants as earnings growth is projected to decelerate.
Alphabet Inc, being one of the 'Magnificent Seven', is likely to be affected by the market shift and earnings deceleration, potentially leading to a decrease in its stock price.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Alphabet Inc's Class A shares are at risk of a bear market due to expected earnings deceleration.
As with its Class C shares, Alphabet's Class A shares (GOOGL) are expected to be impacted by the same market dynamics, potentially leading to a short-term price drop.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Meta Platforms Inc faces the risk of a bear market as part of the broader tech stock downturn, with slower earnings growth expected.
As a member of the 'Magnificent Seven', Meta Platforms is likely to be impacted by the predicted market shift and earnings deceleration, which could lead to a short-term drop in its stock price.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Microsoft Corp is expected to experience a slowdown in earnings growth, potentially leading to a bear market for its stock.
Microsoft is part of the tech stock group that may see a bear market due to a slowdown in earnings, which could negatively affect its stock price in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
NVIDIA Corp could be heading towards a bear market with a deceleration in tech earnings growth on the horizon.
NVIDIA is part of the tech elite that may see a bear market due to slower earnings growth, which could negatively influence its stock price in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Tesla Inc is among the tech stocks that may enter a bear market due to a projected slowdown in earnings growth.
Tesla's stock may be affected by the anticipated market shift and deceleration in earnings, potentially leading to a short-term decline in its stock price.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80