1Jeremy Siegel, “Valuing Growth Stocks: Revisiting the Nifty Fifty,” AAII Journal, October 1998. The analysis defines value with respect to market returns over the period December 1970–August 1998 such that a fairly valued portfolio would show the same return as the S&P 500 over this time period, while an overvalued portfolio would underperform the index, and an undervalued portfolio would outperform the index.
2Based on Alger’s analysis of FactSet data. Note that the Magnificent 7 include Apple, Amazon, Alphabet, Nvidia, Meta, Microsoft and Tesla.
3The calculation is based on cost rather than market value.
4 S. Patrick Viguerie, Ned Calder, and Brian Hindo, “Innosight 2021 Corporate Longevity Forecast,” May 2021.
The views expressed are the views of Fred Alger Management, LLC (“FAM”) and its affiliates as of December 2023. These views are subject to change at any time and may not represent the views of all portfolio management teams. These views should not be interpreted as a guarantee of the future performance of the markets, any security or any funds managed by FAM. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities.
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