In the beginning of 2025, most people forecasted this year would S&P would rise to 6,600 points but there should be a prominent adjustment. However, it is hard to say whether it would come in first half of second half of the year. Now the market rose up to record high after the crash in April, there everyone is waiting for a drop to buy in. Most people still set their target of S&P at 6,600 or 6,700.
Therefore any adjustment will be a golden chance of buying. Since the market is near record high, so better buy those blue chips like Magnificent 7 to lower the risk. The Magnificent series can be divided into 4 groups.
- King of Kings: NVDA, MSFT. The market capitalization of NVDA on closing of Aug 1st (Fri) is $4.1Trillion and MSFT is 3.8 Trillion, while the GDP of UK in 2024 is just 3.6 Trillion. Either one is more than the whole UK. That is why Wall Street is Wall Street, Silicon Valley is Silicon Valley. NVDA is expected to be the first company that reaches 5, 6, 7 Trillion in the next few years. As for META, the advertisement revenue reached $46.56 billion, out of a total $47.52 billion in revenue – meaning ads made up nearly all of META’s income, quite promising. As AMZN, the investment in AI is $100 Billion the greatest among the Magnificent Seven. Therefore, these 4 stocks should put in first rankings and should hold at least 2 in hand.
- Lord of Lords: GOOG is in ranking of Lord of Lords because of quantum computer and now not yet reach record high, still much room for rising.
- Stars of Tomorrow: AVGO is said to be the Magnificent 8 soon or the next NVDA; TSM is said to be the Magnificent 9 soon also the next NVDA.
- Hibernation: TSLA will have full self-driving and but not in this year. Development of humanoid robot is slower than expectation, the outlook is quite good in 2026 or 2027. APPL already lost its glamour, its apex is in the era of i-phone 5 to i-phone 10. Now hard to have any breakthrough for already too many breakthroughs in the past. Both waiting for re-generation of power.
In order to make your investment account stable, so when crash comes still can recover soon, a smart investor should hold at least 3 stocks among the magnificent series, out of which 2 should be in group (a) King of Kings. Then you are practically part of the King of Kings.