A handful of trillion-dollar corporations, known as the Magnificent Seven, have been the driving force behind the stock market's narrative and most of its recent returns. These companies established the bedrock of today's digital economy. Nevertheless, even the most robust businesses are ultimately constrained by the Law of Large Numbers.
Put simply, it is mathematically challenging for a company worth $3 trillion to double in size compared to a company worth $50 billion. Growth eventually slows down as market saturation sets in. As we close out 2025, a shift is occurring in the markets. Institutional investors are beginning to look downstream.
