Nick Nelson in CNBC: ‘US has the macro backdrop and earnings to drive stocks higher’

What do you think of US equities?
A very focused market in leadership, performance, and earnings delivery within the Mag-7.
The top 10% of companies by number, make up ¾ of the index – the highest proportion in 100 years.
For now, the US does have the macro backdrop and earnings to support valuations.

Are the Mag-7 priced too aggressively?
Aggregate valuations on the US are full to expensive, the market is on 21x forward EPS for the US.
Annualised Q4 figures, show these companies are running at c.$400bn per year of earnings.
There is some concern for investors on momentum and narrow leadership.

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