I have been an advocate of holding a barbell position of U.S. large-cap growth and EAFE value stocks in equity allocations. More recently, the EAFE value portion has outperformed while the U.S. large-cap growth component has lagged. As a consequence, I am increasingly seeing questions of whether it’s time to rethink the allocation to U.S. large-cap growth stocks.
As the underperformance of U.S. growth is mainly attributable to weakness in the Magnificent Seven names. The question becomes: Has the Mag 7 become the Lag 7?
As the underperformance of U.S. growth is mainly attributable to weakness in the Magnificent Seven names. The question becomes: Has the Mag 7 become the Lag 7?
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