Finding value in more than just the Magnificent Seven
Where I Am? | Viewer ==> Finding value in more than just the Magnificent Seven

Coronation Management Company

  Coronation Management Company   Q3 of 2024 | 2 years ago

Many stock markets have delivered strong returns thus far in 2024, but the US continues to dominate, compounding more than a decade of outperformance. Indeed, much has been written about the narrowness of stock market returns, with the US beating all regions, technology beating all sectors, and the Magnificent Seven of Amazon, Alphabet, Apple, Microsoft, Meta, Nvidia and Tesla trouncing, well, almost everything. In fact, an equal-weighted index of these seven shares has returned an annualised 47% over the last five years, roughly triple the S&P 500’s very healthy 16% (Figure 1). To put this into perspective, $1m invested in the Magnificent Seven five years ago would now be worth $6.8m, compared to $2.1m if invested in the S&P 500 and $1.3m if split equally across the five other indices shown in Figure 1.


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Did You Know ?

DYN

In 1965, the first unit trust in SA , Sage Domestic Equity Fund ,was launched.

In 2019, Stanlib spinned off index tracking funds to a boutique asset manager 1VEST.

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Our unit trusts prices captured in and around the end of each month and are rounded off to the nearest full 1 cent.