Magnificent 7 Performance: What you need to know.
- Technology leads in 2025 – Information Technology is up over 13% through August.
– Concentration risk – Heavy exposure to a few mega-cap stocks, with valuations near all-time highs at 22.5x earnings. - Broader market strength – Eight of eleven sectors have posted positive returns over the past year.
- Valuations approaching peaks – Both the Magnificent 7 and S&P 500 are nearing historic highs, raising questions about fair pricing.
The chart illustrates the Magnificent 7’s outsized impact on market returns while underscoring the importance of maintaining balance and diversification over chasing recent winners.
