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- Nasdaq Shake-Up: Who’s In, Who’s Out? 📈
Nasdaq Shake-Up: Who’s In, Who’s Out? 📈
Did you know that the Nasdaq 100 index, representing 100 of the largest nonfinancial companies, had its inception in January 1985 and has become a benchmark for technology and innovation-focused stocks?
Did you know that the Nasdaq 100 index, representing 100 of the largest non-financial companies, had its inception in January 1985 and has become a benchmark for technology and innovation-focused stocks?
Any investor worth their salt should include growth-oriented stocks in their portfolio, especially technology-oriented ones like Nasdaq.
Here’s what we have for you in today’s edition:
A Change In The Nasdaq 100: First, we’ll discover how Super Micro Computer is set to replace Walgreens Boots Alliance in the Nasdaq 100 index 🖥️
Jaime Dimon’s Latest Warnings: Next, we’ll look at Jamie Dimon claims of potential economic risks 📢
Are We Entering A Stock Market Bubble? Finally, we’ll explore the current debate among investors and analysts about whether we are in a stock market bubble 🤔
Stay informed and prepared with our latest analysis and expert perspectives. Enjoy the read!
A Change In The Nasdaq 100 🖥️
Super Micro Computer will replace Walgreens Boots Alliance in the Nasdaq 100 index before the start of trading on Monday, July 22.
The change, announced in a press release issued Friday evening, reflects the sharp decline in Walgreens’ market value this year and the surge in Super Micro’s stock price.
The Nasdaq 100 is composed of 100 of the largest nonfinancial companies in the Nasdaq composite.
This change has been anticipated given the drop in Walgreen’s stock price and the big gain in Super Micro’s share price 👀
Companies need to maintain a weighting of at least 0.1% of the Nasdaq 100’s market value, now over $20 trillion, to maintain membership in the index.
Walgreens market value is around $10 billion, or about 0.05% of the index’s value.
Walgreens has the lowest market cap in the index.
Jaime Dimon’s Latest Warnings 📢
JPMorgan Chase Chief Executive Officer Jamie Dimon, discussing his bank’s second-quarter earnings on Friday, said that while there has been some progress in taming rising prices, inflation and interest rates may stay higher for longer.
“While market valuations and credit spreads seem to reflect a rather benign economic outlook, we continue to be vigilant about potential tail risks,” Dimon said in a statement.
Those risks include: geopolitical unrest, inflationary pressures such as the need for infrastructure-related spending and fiscal deficits, he said.
“Therefore, inflation and interest rates may stay higher than the market expects,” Dimon wrote.
“And finally, we still do not know the full effects of quantitative tightening on this scale.” Dimon has been sounding these warnings for nearly two years.
Those who have listened to his advice have failed to participate in one of the greatest stock market rallies in recent history 🚀
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Are We Entering A Stock Market Bubble? 🤔
Investors have much to cheer about as the stock market hits record highs.
Yet fears that stocks are expensive raise the question:
Should you break out the bubbly or batten down the hatches? 🤷🏻
Yet the force that’s elevating the market—enthusiasm for artificial intelligence—is also stoking fears, since just a handful of stocks are powering most of the gains.
A mix of narrow breadth, optimism, and low volatility is creating an unprecedented situation.
Some analysts argue that the rubber band gets more stretched every day, but predicting the timing of when it snaps remains a uniquely difficult endeavor.
Some see echoes of the last tech bubble.
Yet there’s a key difference:
This time around, there are real earnings underpinning lofty valuations of the tech sector 💰
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