Lesley Marks, Mackenzie Investments CIO of Equities, discusses the weakening momentum of some Magnificent Seven stocks. She notes that increased capital expenditures are impacting free cash flow, leading to equity issuance instead of buybacks.
Lesley Marks, Mackenzie Investments CIO of Equities, highlights that the momentum factor for the Magnificent Seven stocks is no longer pervasive, despite Nvidia gaining almost 12% year-to-date. She explains that increased capital expenditures are impacting free cash flow, causing a shift from stock buybacks to equity issuance. Marks advises investors to consider taking profits from these positions and deploying them into other market areas.
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