Chart of the week: Magnificent 7 has seen ~3 times better performance than the other 493 stocks of the S&P 500 in 17 months
The market has never been driven by such a low number of stocks
The Magnificent Seven stocks - Nvidia, Microsoft, Apple, Amazon, Meta, Google, and Tesla have outperformed the rest 493 firms of the S&P 500 index by roughly 3 times since the beginning of 2023.
If not for these seven stocks the S&P 500 would have not seen a 37% gain over this period.
In the last 12 months alone, the Magnificent 7 has risen by over 50% versus only ~20% gain of the rest 493 firms.
The Magnificent 7 companies are now larger than the Canadian, UK and Japanese stock markets COMBINED.
Meanwhile, the market capitalization of the 10 largest US stocks accounts for over 13% of global market value.
This is way above the Dot-com bubble peak of 9.9% in March 2000.
Is the US stock market in a Bubble? What are the market risks in the months ahead?
Please read the below 2 articles to find out:
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