2023 has been a relatively good year for the benchmark S&P 500 and growth stock-fueled Nasdaq Composite. The S&P 500 is widely viewed as the best benchmark of Wall Street’s health. It’s a market cap-weighted index comprised of 500 generally profitable, time-tested companies, a few of which have multiple classes of shares. All told, the S&P 500 has 503 components, with representation from all sectors and most industries.
The S&P 500 is higher by nearly 13% on a year-to-date basis, as of this past weekend (ended Oct. 13), the equal-weighted S&P 500 is down by almost 1% for the year. In other words, the Magnificent Seven have been almost entirely responsible for pulling the benchmark S&P 500 higher this year.
The S&P500 without the top [magnificent] seven companies is down 14% year to date.
Apple (AAPL 0.25%)
Microsoft (MSFT 0.96%)
Alphabet (GOOGL 0.45%) (GOOG 0.39%)
Amazon (AMZN 1.62%)
Nvidia (NVDA 1.36%)
Meta Platforms (META 0.03%)
Tesla (TSLA -9.49%)
The Magnificent Seven bring two attributes to the table that make them irresistible to many investors.
1. they’re industry leaders with relatively sustained moats and/or competitive edges.
2. They outperform.
The Magnificent 7 now account for 29.6% of the total S&P 500 market cap, the highest level on record pic.twitter.com/TyIlSgjtkI
— Barchart (@Barchart) October 14, 2023
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts. He is open to public speaking and advising engagements.
