Key insights
- The 'Magnificent Seven' stocks, excluding Apple, are underperforming, with some like Microsoft experiencing significant declines. Despite this, retail investors remain loyal, viewing them as long-term holdings. Apple's recent outperformance, potentially driven by Siri developments, offers a slight counterpoint. Overall, retail sentiment is not aligned with market performance, suggesting potential downside risk if loyalty wanes.
"Magnificent Seven" (MAGS) stocks continue to underperform, except for Apple (AAPL).
Investopedia editor in chief Caleb Silver discusses retail investors' continued loyalty to the Mag Seven, while Yahoo Finance Senior Reporter Ines Ferre explains why Apple is outperforming.
one place that is still not a safe haven is Max 7. Those stocks still continue to trade absolutely awfully.
Yeah, did a correction or deeper for a lot of them. Look at stocks like Microsoft, which was, you know, one of the strongest stocks in the market over the past few years and really over the past couple of decades. That's down, you know, about 30% or so. So, we got stocks like that in deep declines and these are the stocks that retail investors hold the most dearly. They're the biggest holdings in their portfolios or the biggest holdings in all of the big ETFs as well. And when we ask uh retail investors and when we ask our individual investors every, every time we survey them, what are the biggest stocks in your portfolio? It's the it's the Mag 7, it's the Fang stocks and the stocks that have taken so much punishment over the last six months or so and they still hold on to them and they still say that they would buy them and hold them for 10 years if given the opportunity. These are the stocks they've been loyal to and we'll see how long they're willing to to keep up that patience.
Anese Fray, last word to you here. Maybe Apple turning 50 tomorrow. Maybe that'll help jump start the Max 7, Anese.
Look, out of the Mag 7, Apple's done very well uh the best recently outperforming. Last week if you took a look at what happened last week with the Mag 7, Apple actually was slightly in the green. So, uh I think their Siri uh developments are helping there.