All through 2023, market strategists famous “slender” market participation, with tech firms, particularly the so-called Magnificent 7 mega-stocks, main the S&P 500′s rally.
The Magnificent 7 — Nvidia, Meta, Apple, Amazon, Microsoft, Alphabet and Tesla — accounted for practically 30% of the index by 12 months finish, main some economists to voice concern about heavy market focus.
The valuations stay sturdy early this 12 months, with all aside from Tesla not too long ago at or close to 52-week highs and all besides Tesla and Amazon hitting all-time highs in latest days, weeks or months.
Sectors dominated by the Magnificent 7, particularly data expertise and communication companies, proceed to guide the inventory market in 2024, “implying that Huge Tech … has been powering the fairness rally,” Bob Doll, Crossmark International Investments CEO and chief funding officer, famous in a report Monday.
We not too long ago requested advisors whether or not they’re involved concerning the Magnificent 7′s excessive valuations, in the event that they’re telling any purchasers to take income and if not, what they’re saying to purchasers who could also be asking.
Take a look at the gallery for insights from 11 advisors. Responses could also be edited for size or readability.