Deep Dive: US equities may not have peaked but do require greater selectivity

Amid equity rebalancing

For over a decade, US equities delivered stellar returns, underpinned by mega cap tech strength, accommodative monetary policy and a business environment tilted toward shareholder value.

However, some argue that this era of easy dominance may now have passed due to the volatility induced by US politics. While the S&P 500 rebounded briskly after its post-'Liberation Day' April trough, it has struggled to return to its February record high, and investor sentiment continues to be divided over whether US equities have peaked or are simply recalibrating. Magnificent Seven splinters In recent years, the Magnificent Seven have driven US equity performance. These firms - Nvidia, Apple, Microsoft, Alphabet, Amazon, Tesla and Meta - accounted for nearly 70% of incremental ear...