FOLLOW THE MONEY

Why MAG7 has rallied so hard and why the 'tourist thinks we're near the end of its outperformance

At the beginning of 2022, as the MEME-stock mania peaked, the “Magnificent 7” traded at 35x forward rolling 12-month earnings. A year later, that multiple had declined to 20x. The amazing part of this decline was that the MAG7 index was down 45% during that period, yet earnings fell only 4.2%. Earnings barely declined, but the stock prices got almost ha…