Poised for change

The "Magnificent 7" stocks have indeed dominated the S&P 500's performance since the onset of the COVID pandemic, enjoying significant earnings growth while others fell behind. However, looking forward, it's evident that this dynamic is poised for a change. In the coming quarters, we foresee a resurgence in earnings across diverse sectors and companies, potentially surpassing the growth of the current market leaders. As this broader earnings expansion unfolds, the once undisputed supremacy of the "Mag 7" will face scrutiny. It's now imperative for investors to adopt a more astute approach to stock selection, acknowledging the shifting landscape. At ECP, we're confident in our ability to identify companies with untapped earning potential beyond the conventional paths, leveraging our investment expertise to navigate these evolving opportunities.