The Un-Magnificent Seven Heads Into Bear Market Terrain

The largest Tech stocks are leading the equity market correction

Highlights

• The largest Tech stocks are leading the equity market correction

• All eyes on this week's February CPI report

• Friday's employment reports revealed clear evidence of increasing slack

• What the impact of uncertainty on growth implies for financial markets

Key Takeaways

• Priced for Perfection, Now Paying the Price: The S&P 500 entered the year with super-inflated multiples and was priced for perfection. Few, if any, expected the trade and tariff file to dominate in these early weeks as has been the case — this was low on the list of voter concerns during the election campaign. But there have been markets to hide in and our call for investors all last year to take their U.S. profits and deploy them in more reasonably priced stock markets has now paid off.