This Is The ‘True Source’ Of Mag7 Magnificence
The episode known in market circles as the "DeepSeek shock" was an unwelcome reminder: Capex isn't something to be pursued just for the sake it.
Implicit in the concept of "investing for growth" is the assumption that eventually, the growth materializes. Otherwise, what are you doing? (Just burning money.)
The Mag7 C-suite would doubtlessly insist that tens of billions thrown at AI development is already paying off, and they'd show you some numbers to prove it. But as we learned last week, the
Hold on please! There is at least one AI success story out there:
https://www.msn.com/en-us/news/technology/ai-generated-trump-and-musk-video-dupes-maga-faithful-into-buying-fake-golden-eagles-coins/ar-AA1yllPv?ocid=winp2fptaskbarent&cvid=a22b08096fb748f39cf32e49cce87643&ei=3
I am curious how anybody over the age of about 12 can believe a purchase of something for say $100 can then immediately be turned over to a bank or other entity for 10 or 20 times that amount?
I’m surprised by the S&P 493 outperforming the “other global equity indexes” by almost 40% in the investment % charts above- 36% to 26%. Maybe if you strip out the top 50 S&P 500 firms in investment percentage you’d end up close to the 26% number. The Mag 7 are magnificent in this respect, but there likely are another 40+ outperformers that are responsible for this disparity.