The magnificent seven stocks -- Apple, Microsoft, Meta, Amazon, Alphabet, Nvidia, and Tesla -- have been stellar performers on Wall Street over the last 12 months, up 107% compared to 26% of the S&P 500.
These unusual gains for such a short time in such an adverse interest rate environment have raised some skepticism on Wall Street as to whether the group can keep on rallying for much longer.
"It's no secret that the Mag seven was the primary driver of returns in equity markets in 2023," Adam Coons, Certified Financial Analyst (CFA) and Portfolio Manager at Winthrop Capital, told International Business Times. "The dominance of these seven stocks naturally begins the narrative of "they cannot possibly keep going up, can they? Just because something has performed much better than expected does not mean that it must experience a mean reversion."
