Strategist Who Coined the Magnificent Seven Warns US Tech Is Set to Lag
- Sees risks from overexposure to US stocks as AI spending peaks
- Expects a pickup in global economy to benefit non-US stocks
Michael Hartnett
Photographer: Alessia Pierdomenico/BloombergThis article is for subscribers only.
US big tech stocks are set to become the “Lagnificent 7” this year, Bank of America Corp.’s Michael Hartnett warned, suggesting investors should buy cheap international stocks instead of chasing pricey US shares.
The strategist, who coined the popular Magnificent Seven term to refer to the handful of tech stocks that powered the S&P 500’s 70% rally since late-2022, said investors have become overexposed to US equities after they attracted record inflows in January.