00:00 Speaker A
The beautiful seven and their profit growth indeed really have profit growth in general for the market, for the S&P 500, specifically. This graph comes to us via Lori Calvasina from RBC, UH, the most important equity strategist there. So here, let's take a look at the entire S&P 500 and the process of the profit growth that we have seen in recent years, 2023, 24. What is expected for 25, 26 and 27. So a bit jerky, especially this dip that we expect to see this year before we come back, but a little steadily on average about 10% or so. Then we just look at the beautiful seven specifically, who, whose growth in recent years far surpassed that of the rest of the S&P 500. This year it is expected that it will delay in the coming years and will stay that way. Part of this is that it is simply difficult to maintain that pace of profit growth, especially since at least part of it came from Nvidia, which saw jumps in the annual base win, because we really started to grab the start of the AI trend. And then we finally have the other 493, the S&P 500 excluding the beautiful seven. What is remarkable here is that, after we have seen a sort of turbulent growth in recent years, we are expected to see a bit of upward profit before stabilization in 2027. And this is what we have heard of many strategists, this idea that if the beautiful seven slows down in terms of profit growth, the other companies will pick up. We heard that the most recently of Ryan Dietrich of Carson Group at the top of the show.
02:52 Speaker B
We know this time two years ago and last year we went completely over 7. That is where the majority of growth and profit growth came from. But it's, eh, it's, you know, expand, I think I want to say. Now that the market acts as it has been, it is a bit different, but we think an expansion is still logical.
03:20 Speaker A
And that is what is so interesting here, Josh, is that even in the midst of all tariff security and all this are going on, that these types of income estimates have been largely kept intact. In other words, that big idea that the Mag 7 will slow down a bit and that everything else will speed up a little.
