The Magnificent Seven name that Sam Ruiz thinks is worth a miss
Note: This interview was taped Tuesday December 10 2024.
A phenomenon has been happening in financial markets over the last couple of years. Despite sharemarkets hitting record valuations and seeing remarkably few pullbacks, the bulls have continued to control the narrative. And by the bulls, we really mean tech bulls thanks to AI. So much so that for only the fourth time in nearly 100 years, the S&P 500 has recorded back-to-back 20%+ performances. Since the March 20 2020 low, the tech-heavy NASDAQ 100 is up nearly 200%.
While these results should make investors happy, it's also a conclusion that Sam Ruiz, portfolio specialist in the International Equity Division at T. Rowe Price, says should invite some caution.
"Heading into 2025, I'd say that the landscape has become almost unanimously more optimistic," Ruiz says.
"High valuations, high optimism, good opportunities, but overarching all of that, I just think we have to recognise that it's something where there's little room for missteps or errors in the market. So you want to be very cautious about where you put your money," he adds.
So if caution is the mantra for 2025, where does Ruiz think the best opportunities still lie? Find out in this long-form interview as part of Livewire's 2025 Outlook Series.
Some of the stocks he mentions include:
- A German company which he says is right in the "sweet spot" of the healthcare trade,
- A life insurance company that trades more like a growth play than a value play,
- An under-the-radar industrial name, and:
- A Magnificent Seven stock he says will be disrupted rather than assisted by artificial intelligence - making it his stock to avoid for 2025.
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