Wall St rebound,but can the magnificent 7 carry the market?

In a recent Financial Review Before the Bell wrap, our Co-CIO Hugh Selby-Smith shared his thoughts on recent market performance.

“We are now nearing the end of the US reporting season and while the season has overall been good, a peek under the covers suggests that all of the growth (1.5 per cent year-on-year growth) has been due to the IT sector, namely the so-called ‘Magnificent Seven’.

“These companies account for approximately 50 per cent of the markets year-on-year earnings per share (EPS) growth, while the other 493 companies in the S&P index have experienced -10 per cent (EPS) growth. There is a big question mark over how much longer the magnificent seven can continue to carry the rest of the market.”

Read the full article here.