Beware Big Tech And Buy These 7% Yielding Blue-Chip Bargains

Summary

• Big tech has driven the Nasdaq up 40% and S&P 20% this year. Big tech is now 30% of the market.
• The Nasdaq is pricing in 20% earnings growth this year and 63% EPS growth through 2025, ignoring a recession that the bond market says is a 96% probability.
• Historically, big tech's earnings fall about 20% during recessions, meaning there is a 40% difference between what is likely and what the market expects to happen.
• Big tech could be as much as 45% overvalued, adjusting for the likely recession in 2024. In a stagflation recession soaring rates could send the Nasdaq down 30% to 50%.
• Financials are the opposite of big tech. They are priced for recession already and trading at a bargain valuation of less than 12X earnings. And these two blue-chip bargains offer a safe 7% yield and coiled spring opportunities to lock in incredible Buffett-like return potential from blue-chip bargains hiding in plain sight.
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Khosrork

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.