The Magnificent 7 is not driving a tech wreck repeat

Alan Pullen  |  Magellan Asset Management  |  21 February 2024

The Magnificent 7 drove markets higher in 2023, accounting for roughly 60% of the S&P500’s 26% return last year. These seven stocks now account for a record 33% of the S&P500’s total market capitalisation. Their market cap is roughly equivalent to the combined value of the UK, Japanese, and Canadian equity markets. The technology sector has now eclipsed is all-time high relative to the S&P 500, exceeding its bubble highs. So this begs the question – is this a bubble and what is the risk of another tech wreck? In fact, this is not a case of history repeating itsel...

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