US equity market strength over the past year has been driven by the magnificent seven and artificial intelligence (AI) players, and this trend is set to continue into 2025 and beyond, according to Dr Kevin Hebner, global investment strategist at Epoch Investment Partners, fund manager partner of GSFM.
But he says it is not a trend that can continue indefinitely.

“The consensus expectations for earnings growth this year for the entire S&P 500 is 12 percent, but that is just an average, and for 493 companies it’s only 5 percent, roughly in line with nominal GDP growth. For the magnificent seven, it is 55 percent.”

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