Lynch: The end of the Mag 7?

August 1, 2024

The dominance of the Mag 7 seems to be coming to an end. “Everything, but the Mag 7 ran in the month of July,” said Eric Lynch, managing director at Scharf Investments during a recent appearance on Reuters TV. There seems to be a convergence taking place between the Mag 7 and the rest of the stock market where earnings growth is coming from several sectors besides tech, including financials and health care. We’re also seeing a sort of false choice in the market where it either has to be big tech or it has to be cyclicals. “In between are a number of high-quality, average stocks that no one thinks about that produce 10% earnings growth and they are cheap,” said Lynch. Health care is an attractive sector and Centene is a stock we find very compelling.

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