Five charts to start your day

Will big tech stocks still outperform in 2024?

Starting the day with a touch of hindsight bias. Take a look at this data visualisation I shared yesterday, featuring the "magnificent seven" that primarily influenced the return of the S&P 500 index last year. Some of these figures are truly remarkable. However, if we were to apply these numbers to 2022, the outlook might not be as enticing.

Could we witness a mean reversion in 2024? It's a possibility. My concern revolves around the sustainability and quality of these returns in the future. I have no doubts about the fundamental strengths of these companies, but I find it challenging to believe that their current valuations reflect so much of their future potential.

This isn't necessarily a problem, but typically, you associate such high forward pricing when you're in a low-interest-rate environment. That's no longer the case, and that's precisely the point I want to make. What are your thoughts on this?

Coming up:

• The top global risks in 2024

• More and more young people are opting to live with their parents

• The world is swimming in debt

• Which asset classes are beating inflation?

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