Is It Time to Sell the 'Magnificent 7'? — Advisors' Advice

Start Slideshow

Throughout 2023, market strategists noted “narrow” market participation, with tech companies, especially the so-called Magnificent 7 mega-stocks, leading the S&P 500′s rally.

The Magnificent 7 — Nvidia, Meta, Apple, Amazon, Microsoft, Alphabet and Tesla — accounted for nearly 30% of the index by year end, leading some economists to voice concern about heavy market concentration.

The valuations remain strong early this year, with all except for Tesla recently at or near 52-week highs and all except Tesla and Amazon hitting all-time highs in recent days, weeks or months.

Sectors dominated by the Magnificent 7, namely information technology and communication services, continue to lead the stock market in 2024, “implying that Big Tech … has been powering the equity rally,” Bob Doll, Crossmark Global Investments CEO and chief investment officer, noted in a report Monday.

We recently asked advisors whether they’re concerned about the Magnificent 7′s high valuations, if they’re telling any clients to take profits and if not, what they are saying to clients who may be asking.

Check out the gallery for insights from 11 advisors. Responses may be edited for length or clarity.

Start Slideshow