Why the "Magnificent Seven" Trade Is Starting to Fracture, and Where You Should Invest Instead
The Magnificent Seven was never a durable investment approach, destined to stop working like earlier versions of the same theme.
Overview
Investors have a bad habit of following the crowd, which is why the term lemmings is often used on Wall Street. Everyone piling into one trading idea often leads to huge media attention and fun nicknames for the hot investment themes. One of the most recent ones is the Magnificent Seven. There's even an exchange-traded fund (ETF), Roundhill Magnificent Seven ETF (NYSEMKT: MAGS), that you can buy.
It really shouldn't be surprising that the Magnificent Seven stocks, Alphabet (NASDAQ: GOOG), Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Meta (NASDAQ: META), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and Tesla (NASDAQ: TSLA), aren't going to be eternally on the rise. That's just not how markets work. Here's what you need to know about the tech-driven Magnificent Seven and where you might want to invest instead.
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Originally published at www.fool.com.