- The “Magnificent Seven”mega-cap stocks accounted for 73% of gains in the S&P 500 in the first half.
- There are five key questions for investors looking at the heavily concentrated rally in stocks this year.
- Investors should avoid expensive and crowded tech names, and look for healthy balance sheets.
The handful of tech companies that have dominated the stock market landscape are set to keep gaining, but the resulting bubble requires a closer look.
That’s according to Bank of America, which says that as this “Magnificent 7” names — made up of Nvidia, Meta, Alphabet, Microsoft, Tesla, Amazon, and Apple — accounts for 73% of S&P 500 gains in the first half of 2023, and together comprise $11 trillion in market capitalization.
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