Exploring the Global 'Mag 7' Opportunity Amid Market Shifts
As international markets begin to catch up with U.S. equities, seasoned investor Tim Seymour highlights a compelling global counterpart to the famed American "Magnificent 7" stocks. Drawing on nearly 30 years of international investing expertise, Seymour points to a fresh portfolio of high-potential global companies trading on U.S. exchanges—offering domestic investors a chance to diversify while tapping into major secular trends.
Why Look Beyond the U.S. in 2025?
While the S&P 500 has shrugged off early setbacks to book a 3% gain year-to-date, many international markets are outperforming it. Europe's Euro Stoxx 50, the UK's FTSE 100, and Germany's DAX are all showing stronger returns this year after long periods of lagging behind U.S. stocks. According to Seymour, multiple structural factors are fueling this shift:
- Valuations: U.S. tech giants have become pricier compared to their global peers.
- Investor Flows: Foreign investors are increasingly favoring local markets over U.S. assets.
- Policy Changes: Countries like Germany embracing deficit spending, offering fresh tailwinds to growth.
Introducing the Global 'Mag 7'
Seymour identifies a set of seven standout global stocks aligned with prominent themes like artificial intelligence and data center innovation—akin to the American "Magnificent 7" names such as Nvidia and Amazon, but accessible on U.S. exchanges. These companies are currently trading at notable discounts, presenting potential opportunity.
A Highlight on SAP
Among his picks, SAP stands out not only for its role in AI software but also its strength in data center and cybersecurity—combining elements seen in firms like CrowdStrike and Salesforce. Long before many tech disruptors emerged, SAP established itself as a global leader in enterprise software, making it a cornerstone of this global portfolio.
Additional Picks and Insights
Beyond the core seven, Seymour also praises Siemens for its promising outlook. His portfolio management role with the Amplify CWP International Enhanced Dividend Income ETF (IDVO) further aligns with these international growth themes.
Broader Market Perspectives
- Geopolitical Impact: Despite recent tensions such as Iran bombings, energy and oil markets remain steady, thanks to resilient energy infrastructures.
- U.S. Outlook: Seymour emphasizes his view is not anti-American; the U.S. is expected to maintain its reserve currency status and economic dynamism.
- European Banking: Deregulation trends in Europe open pathways for banks like Barclays to expand and thrive.
- Timing: Seymour argues this moment marks a strategic inflection point where global markets could outpace the U.S.
In summary, this global version of the "Magnificent 7" offers U.S. investors a timely chance to diversify amid shifting market leadership, capitalizing on international innovation and economic reform.