From 2006 to today in 2026, the weight of pure value stocks has shrunk sharply from 26% to 11%, while the weight of pure growth stocks including the tech seven (Mag 7) has skyrocketed to 46%! The S&P 500 Index has essentially become a 'growth stock carrier' highly bound with AI capital expenditure and tech giants' profitability. As long as the AI capital expenditure cycle is still there, the profits of the tech giants can offset the recession of the traditional industry under inflation.
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