CNBC Daily Open: A true bull market — it's not Wall Street
- by NBC Los Angeles
- Jul 11, 2024
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[PRO] Doubling revenue growth
Needham analyst Laura Martin raised her price target for Apple to $260, suggesting a 13.7% upside from recent levels. While Apple shares have outperformed the S&P 500 this year, they have seen smaller gains than the tech-focused Nasdaq Composite. Martin believes Apple can double its revenue growth — this is how.
The bottom line
The S&P 500 notched its 37th record high. That may sound impressive, but the market is grinding higher on the backs of a handful of megacaps. However, there is another market that is in the midst of a broad-based bull run — clocking up record highs in 17 out of 27 sessions in June.
India's benchmark NSE Nifty 50 is up almost 12% this year. Not to be outdone, India's S&P BSE Sensex has soared nearly 11% so far this year.
"India is completely a unique case on its own," Ruchir Sharma, chairman of Rockefeller International, told CNBC. "It's the most expensive market in the world today. It's the one country that's having a true bull market, even compared to the U.S. The breadth of the Indian bull market is what you typically see in bull markets—everything is rising there, from the mid to small caps, they're doing better than the large caps."
The Indian election appears to be nothing more than a blip on the radar — continuity under Prime Minister Narendra Modi and the prospect of economic growth have supercharged the market. Although, Modi's recent visit to Moscow has raised concerns in Western capitals as they attempt to shore up an alliance against Russian President Vladimir Putin.
"I would not say geopolitics is a major risk for investors in emerging markets," Sharma said. "In fact, if anything, I think we will look back in history at the time the U.S. has imposed sanctions on Russia in an unprecedented way by weaponizing the dollar, that has set in motion where countries are trying to find their own alliances and trying to reduce their dependence on the U.S. dollar."
"That's why the price of gold is doing so well, with central banks around the world buying gold in record numbers. I think emerging markets outside of India are extremely cheap."
Back on Wall Street, the S&P climbed above 5,600 for the first time — with Nvidia, Apple and Tesla among the mega-caps continuing their inexorable rise. It's got many investors wondering if other stocks will make a comeback.
"Is mean reversion dormant or is it dead?" Sharma asked. "If mean reversion is dead, this is going to be a pretty boring market where the same few stocks keep piling on, keep doing well in a way that has never happened before."
— CNBC's Jeff Cox, Brian Evans, Samantha Subin, Yun Li, Arjun Kharpal, Alex Harring, Spencer Kimball and Jesse Pound contributed to this report.
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