It is empirically proven to be the case that stocks with high valuations tend to underperform the market long term. I mean, we quite literally have the data. Amongst the Nifty Fifty was IBM, Texas Instruments, General Electric and AMP. What possible reason in 1973 would you have that these companies would underperform the overall stock market over the next 50 years? These were the leading tech companies of the time. IBM literally had a monopoly on computers and owned an absolute shit ton of patents along with GE. How could they have let that slip away? Mismanagement. Every individual stock has that risk. Of the MAG 7 stocks, it's guaranteed that some of them will stumble and be supplanted. Shit, it's not that long ago NVIDIA and Microsoft were considered bad buys and these stocks were called FAANG, and included Netflix. What possible reason is there for Tesla's market cap to be over 300 times it's earnings? Meta is already underperforming the market. I mean if the reason for the MAG 7 growth is because of AI, why is Apple even included when they are betting AI is going to be a bust? Google was considered DOA because of their lack of investment in AI, now they are a good buy because they are pouring a bunch of money in it to play catch-up? I'm as invested in the MAG 7 as the average person is, but to think they are likely to outperform is just not logical when their combined P/E ratio is 41 and the S&P 500 itself is 31 which has always indicated a recession.

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Books where cooked lol. Once you do that there’s no going back. Same reason GE failed once people found out they were cooking the books.

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Still don’t get the humanoid thing. Feels like all the appliance companies are missing a step in AI opportunity. I don’t want a humanoid. I want a Maytag washing machine that washes/drys/folds. A GE fridge/oven combo that can prep raw ingredients and and assort them to their pots/pans to be cooked on the stove. Think of all the main parts that would need custom applications in homes. Not to mention all the add on 3rd party accessories, service/parts. A whole industry created from ai..

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Manufacturing PMI has sucked everywhere for 6+ months now, so much for that US renaissance. Now we’re all just losing more together! Well unless you’re in $GE

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