The Magnificent Seven: A study in market cyclicality

The Magnificent Seven: A study in market cyclicality

Expert perspective July 09, 2024 Shares in just seven companies—Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla, known collectively as the “Magnificent Seven”—have accounted for a significant portion of the U.S. equity market’s return in recent years. Some observers express risk concerns, but a hypothetical portfolio tracking the Russell 3000 Index except for those companies would have lagged the index by approximately 2.1 percentage points, annualized, over the past 10 years.1 While investors would have been worse off if …