It’s said that variety is the spice of life. That’s true of investing as well. Many investors are finding out that owning some or all the vaunted Magnificent 7 stocks can hurt a portfolio when these individual stocks perform the same way.
It's all about artificial intelligence (AI). Just 12 months ago, the artificial intelligence (AI) trade looked unstoppable. The technology sector shook off the threat of tariffs and pushed many stocks to new highs, particularly those of the Magnificent 7. It's a different year in 2026. The Mag 7 stocks look much less magnificent, and that’s a problem for investors who may have believed they had a diversified portfolio.
