{"id":5782,"date":"2024-10-27T03:08:00","date_gmt":"2024-10-27T03:08:00","guid":{"rendered":"https:\/\/www.asadkarim.co.uk\/?p=5782"},"modified":"2024-10-21T15:09:12","modified_gmt":"2024-10-21T15:09:12","slug":"risks-of-the-sp500-index","status":"publish","type":"post","link":"https:\/\/www.asadkarim.co.uk\/?p=5782","title":{"rendered":"Risks of the S&P500 Index"},"content":{"rendered":"\n

The “Magnificent Seven” is a term coined by Bank of America<\/strong> analyst Michael Hartnett to describe seven industry-leading tech-focused companies: Microsoft<\/strong> (NASDAQ: MSFT)<\/a>, Apple<\/strong> (NASDAQ: AAPL)<\/a>, Nvidia<\/strong> (NASDAQ: NVDA)<\/a>, Alphabet<\/strong> (NASDAQ: GOOGL)<\/a> (NASDAQ: GOOG)<\/a>, Amazon <\/strong>(NASDAQ: AMZN)<\/a>, Meta Platforms<\/strong> (NASDAQ: META)<\/a>, and Tesla <\/strong>(NASDAQ: TSLA)<\/a>.<\/p>\n\n\n\n

What this actually means is that these seven companies are now so valuable that they make up a combined 35.5% of the S&P 500.<\/p>\n\n\n\n

Thus the index of 500 companies is 35.5% dominated by the 7 technology titans<\/strong>.<\/p>\n\n\n\n

Thus, the risk is that The Magnificent Seven are so valuable that they can single-handedly spark a so-called correction in the S&P 500. A correction <\/a>is a fall of 10% to 20% in a major market index, so an average decline of 28% in the Magnificent Seven could put the S&P 500 in correction territory<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The “Magnificent Seven” is a term coined by Bank of America analyst Michael Hartnett to describe seven industry-leading tech-focused companies: Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA). What this actually means is that these seven companies are now so valuable that they make up a combined 35.5% of the S&P 500. Thus the index […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5782","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/5782","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5782"}],"version-history":[{"count":1,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/5782\/revisions"}],"predecessor-version":[{"id":5783,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/5782\/revisions\/5783"}],"wp:attachment":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}