The U.S. market has been divided into the "Seven Sisters" and 493 other members of the S&P 500 index, and its market capitalization has grown to become the second largest in the world as the rally has become more concentrated in the "Seven Sisters".
On Thursday, according to a research report by Jim Reid, head of global economics and thematic research at Deutsche Bank, two charts showed that the market capitalization of the "Seven Sisters" of U.S. stocks has surpassed that of many developed countries.
The market capitalization of the "Seven Sisters" of the U.S. stock market is enough to make it the second largest in the world, twice the world's fourth-largest Japan, and very close to the market capitalization of countries such as France, Microsoft, Apple, Saudi Arabia and the United Kingdom.At the same time, the "Seven Sisters" parabolic ** of the U.S. stock market has also triggered concerns about the "Internet bubble 2."0" and over-focused concernsBernstein analysts warned in a note that the valuation of the "Seven Sisters" in US stocks is too extreme:
From the perspective of corporate profits, the profit scale of the "Seven Sisters" of U.S. stocks is about equal to Japan's profit and about half of China's profit.
If the "Seven Sisters" are truly unique, then their remarkable performance may be justified. Unfortunately, this is not the case, and instead there are growing signs that investor enthusiasm for these seven ** reflects today's speculative, momentum-driven markets, but investor short-sightedness has led to huge opportunities elsewhere.Despite these concerns, Goldman Sachs analyst D**ID Kostin still believes that the "Seven Sisters" of U.S. stocks may continue to maintain their momentum in 2024.