No, not the movie with Yul Brynner and Steve McQueen or the remake with Denzel Washington. Rather, they're keeping an eye on the seven largest stocks in the S&P 500. Those are, in order of market capitalization : Apple, Microsoft, Alphabet, Amazon.com, Nvidia, Tesla and Meta Platforms.
The difference is the "Magnificent Seven." As a group, these stocks have returned 92% in 2023 on average. "Even if the generals are strong on the front line, if the soldiers have fallen way behind, it's not as strong a front as if you had generals and soldiers on the front line," says Sonders. The risk is that some of those market leaders could come back to Earth, and bring the value of the index down with them, says Liz Young, head of investment strategy at SoFi.
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