Is AI losing its mojo and a bubble is waiting to burst? Investors take note as this UK billionaire’s investment fund is selling Magnificent 7 stocks like never before

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The FeedLast Updated: Dec 17, 2024, 11:21:00 PM IST

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Hargreaves Lansdown's billionaire co-founder, Peter Hargreaves is now spearheading a massive selloff of Magnificent 7 stocks, that is indicating that the stock market's bubble may be close to bursting, as per reports. US investors are indeed taking note of this latest development. Here's why

Is AI losing its mojo and a bubble is waiting to burst? Investors take note as this UK billionaire’s investment fund is selling Magnificent 7 stocks like never before

The US stock market is currently in a position where it is going through a massive bull run over the past two years. Many market experts are of the opinion that stock market is currently in a bubble, which is just waiting for the right opportunity to burst. Adding more fear into this scenario is Hargreaves Lansdown and its co-founder, Peter Hargreaves, who have begun a massive selloff of the Magnificent 7 stocks in recent days.

This is being as a critical development around the US stock market, with chances that things may not be good at Wall Street at the moment.

Peter Hargreaves' recent activities warning about a possible US stock market crash?

Peter Hargreaves, who is himself worth a few billion dollars, has watched his Blue Whale Growth Fund's returns grow twice in value since its inception in 2017, as per reports. However, this is the same person, who is now taking cautious steps owing to the AI overhype, which has the potential of generating a massive US stock market crunch in the coming days.

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Moreover, the US stock market, which is going through the bull run, is primarily backed by technology-based stocks, whose market capitalizations is simply on the rise, with no projections of coming down in recent months. However, if things get overhyped, there are major chances that the US stock market could come crashing down, and with it, so will the stock indices like S&P 500, whose backbone is some of the Magnificent 7 stocks.

FAQs:

What are Magnificent 7 stocks?
The Magnificent Seven stocks are a group of seven high-performing assets, including the likes of Alphabet, Amazon, Meta Platforms and many more.

Has the US stock market crashed?
No, the US stock market has not crashed in recent while, and has instead been on a major bull run for a major part of two years now.

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