Wes Read CPA, CFP®CEO PracticeCFO and CEO Practice Orbit

The Magnificent Seven Stocks

Name: The Magnificent Seven Stocks
Uploaded: 2023-12-20T20:02:07+00:00
Duration: 44 s
Channel: Wes Read CPA, CFP®
Description: Short video commentary (Wes Read, CPA, CFP®) arguing that seven large stocks have driven over half of the S&P 500’s year-to-date performance. Speaker…

20 Dec 2023 · 1 min

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Short video commentary (Wes Read, CPA, CFP®) arguing that seven large stocks have driven over half of the S&P 500’s year-to-date performance. Speaker states the S&P is up about 19% year-to-date, and that excluding the "Magnificent Seven" the index would be up roughly 8%. The speaker names several of the big stocks (Nvidia, Tesla, Alphabet, Microsoft, Apple) and warns that if these leaders stop outperforming, broad indices may pull back; he also suggests small caps and smaller/underperforming stocks may have room to run.

Chapters

So, essentially, seven stocks are responsible for over 50% of the S&P's performance this year. I think the S and P is up about 19% year to date as of today. And if you strip out the magnificent Seven stocks, those big stocks, including Nvidia, Tesla, Alphabet, Microsoft, Apple, if you strip them out, we're only at about an 8% year to date gain. And so that just goes to show you that the largest stocks are those magnificent seven that have been driving the market performance. If they don't continue to perform the way that they have, we're probably going to see a pullback, at least in these overall broader indexes like the S and P and the Russell 3000. I do think that small caps have some room to run. And, and also some of those smaller, not necessarily small cap stocks, but smaller than those magnificent seven stocks that have underperformed this year.