The Magnificent 7

The current level of concentration of tech giants in US markets is unprecedented. Could this be a bubble in the making?

The Magnificent Seven is the new acronym everyone is talking about in global equity markets. They are the seven largest companies by market capitalisation in the US  (Microsoft,Apple, Nvidia, Amazon,Alphabet,Meta, Tesla) and have been on a tear over the past few years. These companies have seemingly been the driving force behind the markets, and their earnings, most recently Nvidia’s, drive market sentiment. Rarely have so few stocks been so important for global equities.

If we look at relative performance, the reason for the hype is obvious. Over the last nine years, the Mag Seven stocks have surged more than 18 times,