BofA: 'Magnificent 7' Stock Stability Indicates No Bubble Despite Outsized Gains
• Decline in volatility of "Magnificent 7" megacap stocks suggests U.S. stock market not in a bubble yet - BofA • Magnificent 7 stocks make up over 60% of S&P 500's returns in 2023, fueling bubble concerns • BofA notes relative stability in these stocks indicates bubble not formed, unlike in 2000s tech bubble • Earnings meeting expectations and asymmetry in stocks' macro reactions also evidence of no bubble • But "fragility risks" still high due to fickle liquidity and momentum, though not extreme risks