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If, like me, you’d watched the market edge higher this morning, what would you have guessed was leading the way?
None other than the Magnificent Seven, of course. In this day and age, it’s generally a good bet that that particular “basket” of stocks will lead markets higher.
In fact, in 2024, Apple (AAPL), Amazon (AMZN), Google (GOOG), Meta (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) accounted for a staggering 60% of the S&P 500’s 24.2% bullish run.
What’s more, if you peek into hedge fund portfolios, you’ll find some combination of these stocks among their holdings. What does this mean for regular folks like us? Well, it means that if you’re generally bullish on the market, it’s a good idea to hold a number of these stocks. Days like this put the proof in the pudding.
But there’s a cloud for every silver lining. What happens when the market goes down? These stocks do, as well, as a function of capitalization weighting.
This is where the time-honored tradition of stock picking comes in. Along with owning some Magnificent Seven names, there are others to choose from.
Some bullish and bearish themes at play in today’s trading will give you some ideas. Watch…
