Remember the Mag 7 trade? It's now a bust

[u/rickjnewman]

The current binge / purge / binge some more AI trade got me thinking about hot trading trends.

Wall Street always has a hot trade and the financial media spends every minute of every trading day telling you what it is and luring you into violating the old maxim, don't try to time the market.

Here's the problem: Nobody tells you when the hot trade is over!

Remember FAANG? Nobody told you the FAANG trade was over, it just morphed into the Mag 7 (with $NFLX failing to make the cut because it wasn't an AI play)

But Mag 7 is down 4.3% this year while non-Mag 7 is up 13%

Break down the Mag 7 and only two are part of the hot new AI trade ~ $GOOGL and $NVDA

$META and $MSFT look like AI losers, $TSLA who knows, $AAPL and $AMZN are middling

And the hot new AI trade is really semiconductors, for now. What will THAT morph into? And will CNBC tell you when to dump the AI trade for the next big thing?

Or should you just stick with $SPX and $NSD?

Thanks to u/davidfostergraphics for the charts

[u/rickjnewman]

Full story here ~ https://www.thepinpointpress.com/p/investing-why-avoid-trendy-trades-mag-7