Under the hood

As André Huwiler rightly points out in his latest Quotedian, the “Magnificent 7” have quietly turned into the “Maleficent 7”. As of last Friday, all seven names were negative year-to-date: Microsoft (-18.8%), Tesla (-10.5%), Amazon (-9.0%), Nvidia (-5.0%), Apple (-2.8%), Meta (-1.8%) and Alphabet (-0.4%).

This is happening in an environment where the S&P 500 and the Dow Jones remain positive, and the equal-weight S&P 500 is up 6.8%. In other words: beneath the surface of the headline indices, leadership is rotating fast—across sectors, styles, and individual stocks. For long-term, selective investors, these “under the hood” shifts are often where the real opportunities emerge.