US Stocks and Sectors Beyond the Mag 7
Three global equities managers discuss the dominance of the Mag 7 and potential alternatives for investors in the S&P 500.
The Mag 7, consisting of seven tech giants, account for over half of the S&P 500's total returns in 2024 and approximately 40% of its total market capitalization.
With positive earnings results from Nvidia, Amazon, and Google, this trend may accelerate.
Historically, sectors have dominated the US stock market, such as financial stocks in 1812 and railroads in 1900.
However, the current concentration of the US market is arguably unprecedented, with few stocks accounting for a significant portion of the market.
It's arguably the most concentrated the US market has been in a long time, and arguably ever, in terms of how few stocks account for so much of that concentration.
Author's summary: US market concentration is high.
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