CIO Weekly: Bleeding Air Out Of The Bubble?

Neuberger 3.34K Followers Follow Summary Equity valuations have compressed by a decent amount over the last 12 months with no broad market crash or even a meaningful correction. The Magnificent Seven have seen a more pronounced de-rating, from around 33x to 23x—a 10-point compression—while the rest of the index (ex-Mag 7) has fallen from approximately 20x to 18x. The de-rating process has been remarkably measured: volatility has flared around discrete events rather than reflecting a broad loss of confidence. subman/E+ via Getty Images By Jeff Blazek and Amr Hanafy Valuations have fallen significantly over the last year, yet the valuation de-rating has been quite orderly as equity returns remain strong. Five interrelated factors may explain why. Equity valuations This article was written by Neuberger 3.34K Followers Follow Neuberger is an employee-owned, private, independent investment manager founded in 1939 with approximately 3,000 employees across 26 countries. The firm manages $567 billion of equities, fixed income, private markets, real estate and hedge fund portfolios for global institutions, advisors and individuals. Neuberger's investment philosophy is founded on active management, fundamental research and engaged ownership. The firm is proud to be recognized for its commitment to its two constituents, clients and employees. Again in 2025, we were named Best Asset Manager for Institutional Investors in the US (Crisil Coalition Greenwich) and the #1 Best Place to Work in Money Management (Pensions & Investments, firms with more than 1,000 employees). Neuberger has no corporate parent or unaffiliated external shareholders. Visit www.nb.com for more information, including www.nb.com/disclosure-global-communications for information on awards. Data as of March 31, 2026.