Eye-opening chart, while earnings of Magnificent 7 have had an unprecedented run, earnings of S&P 493 have been more or less stagnant since 2020.
Is the US economy really so strong? Source: Michel A.Arouet, Bloomberg
Since the April 8 low, the SP500 has rallied by 30%.
This is powered by a 50% surge in Mag7 stocks, while the rest of the S&P 500 members gained 21%. Source: Augur Infinity on X
You can almost see the "Ex Mag 7" on this chart when looking at the Bloomberg Mag 7's gain of 2,800% since inception in 2015. Almost...
Bloomberg Mag 7 since March 2015: +2,800% Bloomberg 500 Ex Mag 7 since March 2015: +129% Source: Bespoke
Almost everyone is all-in on the Mag7 stocks
169 surveyed fund managers with $413 billion in assets said in August that the 'Long Magnificent 7' is the most crowded trade. Professionals, foreigners, and retail investors are heavily invested in these stocks. Source: Global Markets Investor, BofA
Wide dispersion among the Mag 7 so far this year
-Nvidia/Meta/Microsoft outperforming -Amazon/Google/Apple/Tesla underperforming Big shift from the previous few years when they all moved in tandem. Source: Charlie Bilello
2025 so far:
The “Magnificent7” are no longer moving in lockstep like they did in 2023 & 2024: ✅ Meta +16.7% ✅Microsoft +13.7% ✅Nvidia +7.1% ❌Amazon -4.4% ❌Google -11.8% ❌Apple -19.5% ❌Tesla -20.2% Source: Charlie Bilello
Mutual funds are 723bps underweight the Mag7
Source: Mike Zaccardi, CFA, CMT, MBA
Mag7 stocks trade at the cheapest in more than 2 years
Source: Mike Zaccardi, CFA, CMT @MikeZaccardi
