The Magnificent 7 vs. the Tech Bubble 5 of 2000

[FD1000]

(seekingalpha.com/news/4062392-the-magnificent-7-vs-the-tech-bubble-5?mailingid=34232052&messageid=2900&serial=34232052.190297)

"One significant difference between the Magnificent 7 and the Tech Bubble 5 is their penchant to re-invest for growth. The Mag 7 re-invests 60% of their cash flow from operations through growth capex and R&D. This reinvestment rate is more than double the 26% of the Tech Bubble 5 and about 3x that of the S&P 493."

"On an earnings yield gap basis, today’s stocks screen considerably cheaper than the Tech Bubble 5," Kostin added.

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FD: Is the above has any predictability? of course not, but it's already 14 years, since 2010.
From 2000 to 2010 the SPY lost close to 10% and QQQ over 48% for 10 years. This (schrts.co/kDSEEiUa).

[yogibearbull]

And then there were only Magnificent 5, i.e. Magnificent 7 minus Tesla/TSLA, Apple/AAPL.

[FD1000]

QQQE: Tech Exposure Without Overweighting The Magnificent Seven (seekingalpha.com/article/4667405-qqqe-tech-exposure-without-overweighting-the-magnificent-seven?mailingid=34232612&messageid=must_reads&serial=34232612.706450).

Summary

* Tech and growth stocks have outperformed since the financial crisis, but their valuations have spiked, causing concern for some investors.

* QQQE offers diversified equity exposure while tilting tech and growth, with reduced exposure to overvalued mega-cap tech stocks.

* QQQE seems a particularly interesting choice for tech and growth investors concerned about valuations in some of the larger names in this space.