Will The Magnificent Seven Stocks Continue To Dominate?

Many people are concerned that the US market is dominated by just seven stocks, "The Magnificent Seven". In this video I look at the reasons behind this success and whether it is likely to continue. I also discuss whether it is sensible to tilt away from these very successful stocks and if you decide to tilt away, I will show you some different ways you can do it.

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Timestamps
00:00 Introduction
00:33 The Magnificent Seven
02:25 Will They Continue To Dominate?
08:43 Should I Tilt Away From Them?
10:47 How Do I Tilt Away From Them?

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DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.

[richardwhite]

A long time ago there was a group of stocks known as the 'Nifty Fifty' where no price was considered too high. It didn't end well. Those who ignore the mistakes of history are condemned to repeat them.

[stevegeek]

I’m happy with my big stake in L&G Global 100, which is heavily invested in the mag 7. I wouldn’t be confident enough to buy big in any individual company stocks though…you never know what’s around the corner.

[ΙΩΑΝΝΗΣ-ΠΑΥΛΟΣΚΩΝΣΤΑΝΤΑΚΑΤΟΣ]

The way i tilt away from them sort of Is 80% FTSE all world (not just S&P 500 or just the US) and 20% small cap value weighted in the US and Europe. Compared to someone who invests 100% S&P 500 i have much less exposure to the magnificent 7.

[richardwhite]

Full disclosure, I own all of them via a tracker fund and therefore have a vested interest in their continued success. However one of the biggest mistakes people make is so called 'recency bias'.

[RajaseelanGaneswaran]

You can really distill complex topics (for me) into understandable videos. Are there any videos yu've made on splitting the S&P 500 into individual sector ETFs, and what kind of returns / costs we'd incur?

[MrScootmcg]

Innovation drives growth and tech is likely to be at the forefront, but yes the market needs more breadth.

[boyasaka]

In 10 years time
The s and p 500 top 20 companies may contain many companies thats not in now, just like 10 yeara ago the s and p looked very different
Buy the s and p every month and chill
The uk FTSE is flat and a pancake and finihsed imo

[MagicNash]

"Equal weight" is definitely a good diversification idea to look at

[harrychufan]

4:30 common misconception. Technically they can sniff unencrypted DNS requests and the first leg of the TLS encryption channel, but once that’s established (that’s how you get the green padlock) all traffic is impossible to sniff out because it’s encrypted from your computer to their server. All brokerages worth half a lick use TLS on everything nowadays, so a VPN really adds no additional benefit from that perspective.

[b-m-c]

Was thinking earlier, most videos advice is based on full working life investing. If you are 10-20yrs from accessing your pension, should the S&P500 not be more attractive as US is so strong and MOST PROBABLY will still be the strongest stock market in next 10-15yrs? I am in this position and i am invested in VHVG and wonder should i keep it, move it to S&P500, or mix the VHVG with S&P on a 60/40% or 70/30% basis to pump up the US bias. Any thoughts on this by others?

[carlyndolphin]

Love watching your videos. Just one question; do you buy individual stocks?

[RelaxingCalmingClub]

Thank you! please keep it up. Very informative and no fancy terms and set up. just pure gold

[CMac]

Thanks. Very interesting and informative.

[ebrahimhabib]

I was exactly thinking of what you said in the video, really exactly!!!
But unfortunately I’m still undecided about it whoever your videos always wonderful and your knowledge and expertise is highly valuable
Regards from Egypt

[kevinu.k.]

I've been wondering about this - I'm just going to sit tight with my current Index Funds.
As for ensuring good behaviour when things slump? I watch a test crash dummy video. The dummy does nothing and it mostly get's to walk away.
A very helpful video - Thank you.

[edwinmarr-wrpz]

Exactly the video I was looking for. As always, thank you

[Kep]

If someone is very young, mid 30s or 20s. Would it make sense to tilt towards smaller names?

[timetraveller]

Great video. I can see these constantly growing over time. There may be a correction but ultimately what can challenge them? Certainly in the next 5-10 years, the Mag 7 are the defacto...I was stupid enough to sell my shares in these companies though.

[DJ-nnwn]

Ramin, Is there a website that aggregates current performance of money market funds?

[sidgb]

I think that Tesla is over valued if you compare it to say Toyota and look at car sales.