Amundi: 'Magnificent 7' Mega-Cap Stocks to Underperform in 2024 Amid Mild Recession
• Amundi, a $2 trillion asset manager, expects the "Magnificent 7" mega-cap stocks to underperform in 2024 due to a mild recession • The Magnificent 7 - Apple, Tesla, Microsoft, Amazon, Nvidia, Meta, and Alphabet - accounted for over 60% of the S&P 500's gains in 2023 • Amundi is underweight on the Magnificent 7 due to high valuations and unrealistic expectations for earnings growth • Amundi's base case is a mild US recession in 2023 with softer overall stock market performance • Amundi believes other areas of the market beyond the Magnificent 7 will benefit as the economy and markets normalize