This year has been tumultuous for equity markets as volatile tariff policy continues to raise concerns around growth both in the US and globally. While these concerns have affected the broader S&P 500 Index, we note that this uncertainty has impacted the Magnificent 7 more significantly, which is down -10.6% year-to-date, compared to just -0.2% for the remaining 493 companies. Despite some recovery in recent weeks amid potential for easing tariff policy, strong earnings results, and AI optimism, we believe diversification is the most important going forward.
Drag 7
