For most of the past decade, investors have had to pay exorbitant prices to own a piece of the world’s biggest technology companies. But that’s changing as AI euphoria gives way to skepticism. Big Tech stocks have been underperforming for months due to concerns about ballooning spending on artificial intelligence and a rotation into sectors that tend to do well in an expanding economy. An index of...
For most of the past decade, investors have had to pay exorbitant prices to own a piece of the world’s biggest technology companies. But that’s changing as AI euphoria gives way to skepticism. Big Tech stocks have been underperforming for months due to concerns about ballooning spending on artificial intelligence and a rotation into sectors that tend to do well in an expanding economy. An index of the so-called Magnificent Seven giants is down 6% since the end of October while the S&P 500 Index is basically flat. That’s a reversal from 2023 and 2024, when the Mag Seven tripled or quadrupled the S&P 500’s return. After the recent downturn, many of those tech behemoths are now trading at valuations rarely seen. Nvidia Corp. is priced at a little more than 21 times forward earnings, which is basically the same as the S&P 500 and down from its 10-year average of 35 times. Amazon.com Inc. shares are priced at 23 times forward earnings, half their average multiple over the past decade of 46. Excluding long-time outlier Tesla Inc. , the group — which also includes Alphabet Inc. , Apple Inc. , Meta Platforms Inc. and Microsoft Corp. — trades for 23 times estimated profits, the cheapest since the tariff tantrum in April. The shift has taken many investors by surprise following years in which the stocks traded at a significant premium to the S&P 500 thanks to rapid revenue growth, booming profits and dominant market positions. To some, however it’s a natural outgrowth of companies like Amazjsut on pumping ever-greater piles of cash into computing infrastructure to develop AI. “It’s amazing the transformation we’ve seen in markets,” said Brett Ewing , chief market strategist at First Franklin Financial Services. “There’s been a complete repricing of the Mag 7 because they underwent a transformation from asset-light companies with massive cash flows, to companies that have been forced to move at an accelerated pace into becoming asset-heavy.” Many of the characteristics that ma...
Bloomberg For most of the past decade, investors have had to pay exorbitant prices to own a piece of the world’s biggest technology companies. But that’s changing as AI euphoria gives way to skepticism. Big Tech stocks have been underperforming for months due to concerns about ballooning spending on artificial intelligence and a rotation into sectors that tend to do well in an expanding economy. A...
Bloomberg For most of the past decade, investors have had to pay exorbitant prices to own a piece of the world’s biggest technology companies. But that’s changing as AI euphoria gives way to skepticism. Big Tech stocks have been underperforming for months due to concerns about ballooning spending on artificial intelligence and a rotation into sectors that tend to do well in an expanding economy. An index of the so-called Magnificent Seven giants is down 6% since the end of October while the S&P 500 Index is basically flat. That’s a reversal from 2023 and 2024, when the Mag Seven tripled or quadrupled the S&P 500’s return. Most Read from Bloomberg After the recent downturn, many of those tech behemoths are now trading at valuations rarely seen. Nvidia Corp. is priced at a little more than 21 times forward earnings, which is basically the same as the S&P 500 and down from its 10-year average of 35 times. Amazon.com Inc. shares are priced at 23 times forward earnings, half their average multiple over the past decade of 46. Excluding long-time outlier Tesla Inc., the group — which also includes Alphabet Inc., Apple Inc., Meta Platforms Inc. and Microsoft Corp. — trades for 23 times estimated profits, the cheapest since the tariff tantrum in April. The shift has taken many investors by surprise following years in which the stocks traded at a significant premium to the S&P 500 thanks to rapid revenue growth, booming profits and dominant market positions. To some, however it’s a natural outgrowth of companies like Amazjsut on pumping ever-greater piles of cash into computing infrastructure to develop AI. “It’s amazing the transformation we’ve seen in markets,” said Brett Ewing, chief market strategist at First Franklin Financial Services. “There’s been a complete repricing of the Mag 7 because they underwent a transformation from asset-light companies with massive cash flows, to companies that have been forced to move at an accelerated pace into becoming asset-heavy.” Many...
primeimages/iStock via Getty Images Market Overview Equity markets sustained their upward trajectory during the fourth quarter of 2025, driven primarily by resilient economic activity, robust corporate earnings from U.S. companies, and continued monetary easing by the Federal Reserve. Global equities reached new all-time highs despite encountering several headwinds, notably a 43-day U.S. governmen...
primeimages/iStock via Getty Images Market Overview Equity markets sustained their upward trajectory during the fourth quarter of 2025, driven primarily by resilient economic activity, robust corporate earnings from U.S. companies, and continued monetary easing by the Federal Reserve. Global equities reached new all-time highs despite encountering several headwinds, notably a 43-day U.S. government shutdown that concluded on November 12th and a gradually rising US unemployment rate. While Q3 real GDP (Gross Domestic Product) growth surged to 4.3% annualized, notably above expectations and supported by 3.5% consumer spending growth, the labor market showed persistent softening , albeit in a linear manner. The unemployment rate climbed from 4.12% in June to 4.56% in November. This labor market moderation, coupled with softer-than-anticipated inflation, prompted the FOMC (Federal Open Market Committee) to implement 25 basis point rate cuts at both its October and December meetings, bringing the federal funds rate to a 3.50%-3.75% range. However, diverging views emerged within the Committee as rates approached neutral levels. In fixed income, the US 10Y Treasury yield remained relatively flat for the quarter, concluding near 4.15% after fluctuating between 3.95% in late October and 4.2% in mid-December as trade tensions eased and growth remained resilient. In equities, global developed markets (unhedged) advanced 3.2%, while emerging markets (unhedged) outperformed with a 4.8% gain, led by Korea's remarkable 27.4% surge driven by AI-related semiconductor demand. Within developed markets, Japanese equities rallied 8.8% following elections and a large fiscal stimulus package announced in November, even as the Bank of Japan raised rates to 0.75%, the highest level since 1995. U.S. large cap equities posted a more modest 2.7% return, with the Russell 2000 gaining 2.2%. Notably, S&P 500 earnings grew 12% year-over-year in Q3, marking the fourth consecutive quarter of double-...
Andrzej Rostek/iStock via Getty Images The United Arab Emirates is considering freezing billions of dollars of Iranian assets held in the country, people familiar with the discussions told The Wall Street Journal , a move that could limit Iran's access to foreign currency and global trade networks. The UAE is also considering a financial crackdown on local currency exchanges used to move money out...
Andrzej Rostek/iStock via Getty Images The United Arab Emirates is considering freezing billions of dollars of Iranian assets held in the country, people familiar with the discussions told The Wall Street Journal , a move that could limit Iran's access to foreign currency and global trade networks. The UAE is also considering a financial crackdown on local currency exchanges used to move money outside of formal banking channels, as well as possible maritime action, such as seizing Iranian ships. While it's unclear when or if the UAE will decide to act, Emirati officials have privately warned Iran of the possible action . The UAE has functioned as a financial hub for Iranian businesses and individuals for years amid Western sanctions, according to analysts tracking Tehran's activities and the U.S. Treasury. Tehran targeted U.S. military bases in Arab states, including the UAE, this week in retaliation for U.S.-Israeli joint strikes on Iran. More than 1,000 Iranian drones and missiles were reportedly fired at targets in the UAE. More on UAE UAE: Motoring Along Nicely With Some Fine Tailwinds To Support It Gulf markets slide as U.S.-Iran conflict ripples across region Seeking Alpha’s Quant Rating on iShares Trust - iShares MSCI UAE ETF Dividend scorecard for iShares Trust - iShares MSCI UAE ETF
E-L Financial ( ELFIF ) declares CAD 0.04/share quarterly dividend , in line with previous. Payable March 1; for shareholders of record March 1; ex-div March 1. See ELFIF Dividend Scorecard, Yield Chart, & Dividend Growth. More on E-L Financial Seeking Alpha’s Quant Rating on E-L Financial Dividend scorecard for E-L Financial Financial information for E-L Financial
E-L Financial ( ELFIF ) declares CAD 0.04/share quarterly dividend , in line with previous. Payable March 1; for shareholders of record March 1; ex-div March 1. See ELFIF Dividend Scorecard, Yield Chart, & Dividend Growth. More on E-L Financial Seeking Alpha’s Quant Rating on E-L Financial Dividend scorecard for E-L Financial Financial information for E-L Financial
(Hallé) Hallé/Elder Watkins’s symphony, fanfare and concerto make for a spirited showcase of the orchestra’s clean harmonies This recording is a celebration of what a fruitful relationship between a composer and an orchestra can be, as well as a souvenir of uneasy times. The Hallé co-commissioned Huw Watkins ’ second symphony, having premiered his first; it was written amid Covid lockdowns and rec...
(Hallé) Hallé/Elder Watkins’s symphony, fanfare and concerto make for a spirited showcase of the orchestra’s clean harmonies This recording is a celebration of what a fruitful relationship between a composer and an orchestra can be, as well as a souvenir of uneasy times. The Hallé co-commissioned Huw Watkins ’ second symphony, having premiered his first; it was written amid Covid lockdowns and recorded for a filmed concert in spring 2021. Concurrently, Watkins wrote Fanfare for the Hallé, which in November 2020 was one of the first works played and recorded in the Bridgewater Hall after nine months of silence. These energised performances, with Mark Elder conducting, are a tribute to the musicians’ resilience. In the symphony, tiny woodwind tendrils unfurl and curl around one another, creating a feeling of irresistible growth and motion, and turning into cartwheeling cascades. The slow movement has the feeling of a nocturne: gauzy, muted textures with glints of light, framing music of high agitation. Continue reading...
JHVEPhoto/iStock Editorial via Getty Images Western Digital Corporation ( WDC ) has done what you'd want a cyclical storage company to do coming out of a downturn, as it has over the last few years. The company's numbers are picking up again, and its margins are expanding nicely. These things have contributed to the stock's exponential rise over the last year (it is up over 500%), but now, the val...
JHVEPhoto/iStock Editorial via Getty Images Western Digital Corporation ( WDC ) has done what you'd want a cyclical storage company to do coming out of a downturn, as it has over the last few years. The company's numbers are picking up again, and its margins are expanding nicely. These things have contributed to the stock's exponential rise over the last year (it is up over 500%), but now, the valuation is a bit far ahead of the fundamentals' trajectory. As with anything that has some exposure to the AI boom cycle, I can understand the bullishness around the company. However, I believe that today's multiples are baking in high expectations around how durable the long-term demand for WDC's products will be. We must consider whether the higher margins are sustainable and will become the new structural baseline because of AI and hyperscale demand, or if they represent a cyclical high in an industry that is historically volatile. In my view, the business momentum is real, but at this valuation, a lot of things need to go right, and I'm initiating coverage with a Hold. Western Digital's Business: A Pure-Play Cloud HDD Infrastructure Supplier The Business and Economic Model Western Digital has a materially different business now from a year or two ago, given that its Flash business now operates under SanDisk. The company is essentially a pure-play HDD manufacturer with an overwhelming exposure to Cloud. It sells high-capacity nearline hard disk drives to: Hyperscale cloud data centers Enterprise storage environments OEM and channel customers Consumer external storage markets That's a diversified group of end-markets, but the main economic driver is Cloud demand. I'd say it's a pretty great position to be in, given the current tailwinds in the space, and ~90% of its total revenue (of $3 billion) in the most recent quarter ( Q2 FY26 ) came from Cloud. The rest came from its Client and Consumer segments. So, this isn't a subscription or SaaS business. Its business model and ...
Ashi Sae Yang/iStock via Getty Images Inflation fears are on the market radar again amid the conflict in Iran. Brad Simpson, Chief Wealth Strategist with TD Wealth, says diversification is an investor’s first line of defence against these risks. Transcript Greg Bonnell: The conflict in the Middle East has set off a wave of market volatility, with plenty of investor concern about the potential for ...
Ashi Sae Yang/iStock via Getty Images Inflation fears are on the market radar again amid the conflict in Iran. Brad Simpson, Chief Wealth Strategist with TD Wealth, says diversification is an investor’s first line of defence against these risks. Transcript Greg Bonnell: The conflict in the Middle East has set off a wave of market volatility, with plenty of investor concern about the potential for rising inflation. But our featured guest today says history shows us that equities can be resilient over the long term. Joining us now to discuss is Brad Simpson, Chief Wealth Strategist with TD Wealth. Brad, always a pleasure to have you here on the show with us. Brad Simpson: Greg, thanks so much for having me. Greg Bonnell: It's obviously big events globally, a lot to get through here. It's impossible to predict with geopolitics what is going to happen next. But you say history shows us that equities can be resilient. Take me through that. Brad Simpson: Yeah, look, and maybe where we start is on this predict stuff, because I think that's some really important context here, is that one of the things that markets don't like is the unexpected. Markets don't know what to do with that. Markets are very good with being able to function with, good or bad, what they think is going to be coming next. So I think a really great starting point of this is, actually going into this conflict and the breakout on Friday of last week, was markets really were expecting this. Now, if you looked at the Polymarket, there was a 68% odds that there was going to be some sort of action in Iran somewhere between, let's call it, the end of February and the end of March. And so, I think the real important piece here was that the market was expecting this. Now, the second one, then, is that when this occurs, of course, the headlines get really loud. And wars are a very, very scary thing. And we watch it on TV, and we discuss it with our friends and family, and they're tense times. And that's very und...
US stocks have flipped the script for international investors since war erupted in the Mideast, handily outpacing the rest of the world after trailing their global peers badly last month. Traders point to US energy independence at a time when crude prices are soaring and to the dollar’s re-emergence as a dominant haven asset during the conflict. The longer hostilities continue, they say, the more ...
US stocks have flipped the script for international investors since war erupted in the Mideast, handily outpacing the rest of the world after trailing their global peers badly last month. Traders point to US energy independence at a time when crude prices are soaring and to the dollar’s re-emergence as a dominant haven asset during the conflict. The longer hostilities continue, they say, the more scope American stocks have to keep outshining other markets. The S&P 500 Index has mostly held its ground this week, falling less than 1% as gains in technology and energy shares helped offset losses elsewhere. Meanwhile, the MSCI All Country World Index excluding the US has tumbled 6%. It’s on track to be the biggest weekly outperformance since April for the US benchmark. “The US is traditionally a more growth-oriented, higher-quality sector within the global equity landscape and that can be a valuable exposure for clients too, if there’s a broader selloff in equities,” said Adam Hetts , global head of multi-asset at Janus Henderson. “You are seeing ex-US equities being more sensitive to the geopolitical risks and some of the sensitivity to oil prices right now.” For US stocks, it’s a stark reversal from February, when the S&P 500 essentially treaded water while overseas shares surged. In a period when worry swirled around the disruptive risk to US stocks from artificial intelligence, the MSCI World ex-US gauge beat the US benchmark by the most since the depths of the financial crisis. The big swing since the weekend shows how fluid sentiment can be as global circumstances change. So far, Asian stocks have borne the brunt of the conflict in the Middle East, with an MSCI benchmark sinking more than 6% through Thursday, and South Korean stocks posting a record plunge before rebounding. An MSCI index of European equities has dropped about 5% this week. Read more: Iran War Punctures Strategy of ‘Sell America, Buy Asia’ Greenback Reversal The resurgent greenback is one key reas...