Search
Get in touch!
Linkedin X-twitter Envelope

Tweedy Browne: “The Magnificent 7” drives the market

In their latest quarterly letter to investors, Thomas Shrager and the team at Tweedy Brown give their assessment of the market. Their International Value Fund, which we follow here on Børsgade, celebrates its 30th anniversary this year and they take the opportunity to look at the development over the long term.

In the short term – that is, here in 2023 – the headlines and the US market (S&P 500) are very much dominated by the big tech companies Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. No less than 73% of the S&P 500’s 16.9% return in 2023 is due to their price increases. According to Tweedy, the primary factors are “recent declines in the headline consumer price index, the resilience of our banking sector post the March crisis, evidence of continued economic strength particularly in the labor market and service sector, and enthusiasm about the prospects for AI (artificial intelligence) related technologies.”

About it they write:

All of these factors and others appear to be fueling investor hopes for a soft economic landing and the avoidance of the long expected inflation and interest rate driven recession. With valuations, particularly in more speculative parts of the market, soaring, and financial conditions tightening in many, if not most parts of the world, the sustainability of this advance may very well hinge on those hopes being fulfilled.

Click here to go to the external source.

Share the news

Disclaimer of liability

The above has been prepared by Børsgade ApS for information purposes and cannot be regarded as a solicitation or recommendation to buy or sell any security. Nor can the information etc. be regarded as recommendations or advice of a legal, accounting or tax nature. Børsgade cannot be held liable for losses caused by customers’/users’ actions – or lack thereof – based on the information in the above. We have made every effort to ensure that the information in the above is complete and accurate, but cannot guarantee this and accept no liability for errors or omissions.

Readers are advised that investing may involve a risk of loss that cannot be determined in advance, and that past performance and price development cannot be used as a reliable indicator of future performance and price development. For further information please contact info@borsgade.dk

You might also find this interesting:

Karen Karniol-Tambour: Today’s Radically Different Market Environment

May 13, 2025

In this Bridgewater Associates interview, Co-CIO Karen Karniol-Tambour discusses the firm’s latest outlook on the global economy, the investment landscape, and the urgent threats facing portfolios. The conversation centers on the shift to a new era of “modern mercantilism,” the implications for US assets and the dollar, the rising risk of recession, and the role of technological disruption, particularly artificial intelligence (AI).

Warren Buffett: Its Time To Pass The Torch

May 13, 2025

Warren Buffett, legendary investor and longtime leader of Berkshire Hathaway, has announced he will step down as CEO at the end of the year, with Greg Abel set to succeed him. Buffett, who will remain as chairman, made this announcement in a surprise move at the conclusion of the Berkshire Hathaway annual shareholders meeting, marking a significant transition for the company he has shaped for decades.

Counterpoint Global: Investing in Second-Order Effects of AI

May 13, 2025

Artificial intelligence (AI) and automation are rapidly transforming the business landscape, with profound implications for companies, workers, and investors. In their April 2025 report, Morgan Stanley’s Counterpoint Global explores how the adoption of these technologies is driving efficiency, reshaping workforces, and creating new investment opportunities-especially through “second-order effects.”

Aswath Damodaran: Dangers of Contrarian Investing

May 6, 2025

In his recent blog post NYU professor Aswath Damodaran examines the popular investment advice to “buy the dip” – that is, to purchase stocks or markets after sharp declines. He explores the various forms of contrarian investing, the historical evidence supporting and challenging these strategies, and the psychological demands required to succeed as a contrarian investor. Aswath urges investors to approach contrarian strategies with caution, discipline, and self-awareness, rather than simply following the crowd or relying on historical averages.