Tech Giants Dominate Market as Investors Brush Off Recession Risks and Drain Savings
• "Magnificent 7" tech giants like Apple and Microsoft now make up 25% of total US market cap, sparking worries of overvaluation • Deutsche Bank's chief economist warns investors are underestimating recession risk based on historical patterns • Pandemic savings cushioned consumers in 2022, but that buffer expected to evaporate by year's end • Heavily indebted commercial real estate developers face refinancing at much higher rates plus lower office values • Complacency in markets on "soft landing" by Fed means investors may be caught off guard by economic downturn