Stock Market Is Ripe for a Correction, Ariel Investments’ Rogers Says
- Says AI rally is overdone, sees potential in small, mid-caps
- Top picks include Mohawk Industries, JLL and Royal Caribbean
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The stock market is ripe for a correction with the Magnificent Seven-fueled rally significantly overdone, according to Ariel Investments’ founder John W. Rogers Jr., who correctly forecast the US avoiding a recession in 2023 and the market’s buoyant rally.
Relative to history, large-cap growth stocks like Nvidia Corp. are overpriced, with earnings expectations ahead of themselves, Rogers said in an interview in Bloomberg’s Chicago office. That said, he views the market’s recent surge to all-time highs on artificial intelligence-driven investor enthusiasm as reminiscent of the bursting of the internet bubble in 2000.