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Alternative Market Briefing

Better to look outside the tech universe, according to some managers

Friday, March 01, 2024

B. G., Opalesque Geneva:

After Nvidia's market value reached a new milestone of $2tln last week, investors might wonder what comes next for the Magnificent Seven companies (Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla). Both Ranmore Fund Management and MAPFRE share similar views in that, for most investors, it may be better to look for opportunities elsewhere to avoid potential bubbles and maximise returns.

The world's top institutional investors are at their most bullish on equities in two years as global growth expectations improve, driving further funds into the Mega Techs, according to Bank of America's February global fund manager survey. Investors have increased their allocation to U.S. stocks to the highest level since November 2021 and to the technology sector to the highest since August 2020, reducing their investments in cash, commodities, emerging markets, as well as defensive and energy stocks. "Long Magnificent Seven continues to be the most crowded trade, with 61% of investors still committed," Nasdaq reports.

Meanwhile, Amazon founder Jeff Bezos recently sold 50 million Amazon shares and Warren Buffett's Berkshire Ha......................

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