1. Big earnings week ahead.

2. The Mag 7 have been lagging many other parts of the market since their July peak.

Analysts expect both revenue and earnings growth to slow in the space.

This, in part, has prompted investors to rotate into other parts of the market. Seeking better returns and lower risk.

3. “High concentration is associated with lower returns over longer horizons.” According to Goldman Sachs.

4. As noted above, the ten largest constituents in the S&P 500 index account for 36% of the overall index and trade at a forward P/E of 31x, substantially above the 19x multiple of the remaining 490 stocks.

“The dominance of the megacaps has supported premium valuations and market capitalization relative to the rest of the equity market.

Nevertheless, it is a subject of debate among portfolio managers whether the market dominance of the leading firms will persist over the next decade.

Research on growth/profitability has demonstrated how difficult it can be for firms to maintain strong growth and high margins over an extended period of time.”

According to Goldman Sachs.

5. Fear and Greed index is flashing a higher probability of correction.

6. To date, 25 countries – including France, Japan and the United States – have pledged to double global nuclear energy capacity by 2050.

Let’s see how that works out with 43% (!) of global uranium production coming from Kazakhstan.

From an investor’s point of view, the “renewables” trade seems to be the better option.

7. Boeing is in trouble.

Here is Boeing versus Airbus over the last 5 years.

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