Part 10/12:
Despite the risks, some companies and sectors remain attractive. Large-cap tech giants like Microsoft, Google, and Meta continue to generate robust cash flows and are leveraging AI internally to boost efficiency and revenues. Conversely, companies like Amazon face challenges, with weaker e-commerce sales possibly due to pull-forward demand and softer consumer activity.
Investors are advised to maintain diversification—owning indices like the S&P 500, Russell 2000, and the Magnificent 7—rather than betting on individual high-flyers prone to sharp corrections. The current valuation landscape, with price-to-sales ratios exceeding those of the dot-com era, warns against complacency.