Is Now the Time to Move Away From the "Magnificent Seven" and Into Small-Cap Stocks?

The "Magnificent Seven" stocks are the leading tech giants in the world, whose valuations eclipse more than $1 trillion in market cap today. Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla are household names that have generated mammoth returns over the past decade. Meta Platforms is technically the worst of the bunch, with a 10-year return of around 540%, which is still far better than the S&P 500's gains of roughly 265% over that time frame.However, the past 12 months have been a very different story with the S&P 500 outperforming all but two of the Magnificent Seven stocks (Alphabet and Nvidia being the exceptions). Investors have been growing concerned about rising valuations in the market of late, and a pullback from these tech giants could be proof of that apprehension.Is investing in the Magnificent Seven stocks still a good idea, or could this be the year to focus on small-cap stocks instead?Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool