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U.S. Big Tech companies did well last year, as investors rushed into the so-called “Magnificent Seven” stocks, including Alphabet, Amazon, Apple, Metaplatform, Microsoft, Nvidia and Tesla. Collectively, these stocks helped propel the benchmark S&P 500 index up about 25% in his 2023 year. But veteran investor and trader Adam Reynolds says it’s time to look outside the United States and consider 10 lesser-known companies from Europe, Japan and Australia. “The focus on US tech stocks, especially the Magnificent Seven, has significantly boosted the performance of the US stock market.The risks of focusing on US tech stocks and the need for diversification are blinding people. APAC said. Reynolds, CEO of Saxo Capital Markets, told CNBC Pro on February 29 that U.S. stock valuations have “reached their limits,” adding that “more diversified stocks,” such as improved valuations and returns, “There is an opportunity to move towards a global portfolio,” he said. He named “10 bright stocks” with market capitalizations of more than $50 billion. Each stock has experienced a combined annual growth rate of at least 30% over the past five years, according to FactSet data. Reynolds suggests investors allocate 30% of their stock portfolio to U.S. stocks, 40% to Asian stocks, and 30% to European stocks. Within Asia, Reynolds said there was a “potential opportunity” in Japan given the weaker currency and the potential for equity returns. Meanwhile, he described Europe as “a very interesting space with a lot of very good companies that are becoming market leaders.” Chip Stocks Semiconductor maker Tokyo Electron’s stock has risen more than 140% in the past 12 months. The company has the highest total return on Reynolds’ list, with a compound annual growth rate of 53% over the past five years, according to FactSet data. Reynolds described the company’s stock as a “great performer” and said it was a notable competitor to U.S. semiconductor giant Nvidia. His ASML company, which manufactures chip-making machines, is also on the list. The Dutch company’s stock price has increased by nearly 50% since last year. “We’re going through what people would think of as a kind of supercycle for the semiconductor industry, and everyone’s getting into the semiconductor industry. And of course, Nvidia is the poster child for that,” Reynolds said. Told. “But we will probably end up with a significant oversupply, so Tokyo Electron and ASML will benefit from that,” he said. Elsewhere, shares in pharmaceutical company Novo Nordisk rose more than 65% in the past 12 months. This is largely due to excitement over the potential of the company’s diabetes and weight loss drug Ozempic. “Novo Nordisk needs no introduction. It’s a very high quality company,” Reynolds said of Europe’s largest company by market capitalization. Mr. Reynold, who works in the auto industry, is also keeping an eye on Chinese automaker BYD, even though its stock price has fallen nearly 14% in the last year. “The speed with which Chinese car companies are starting to improve quality is amazing, and BYD is at the forefront of that,” he said. Tesla’s rival recently made headlines with the launch of its new electric supercar, the U9, which it says can achieve speeds comparable to high-end models produced by industry giants like Ferrari.
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