This week’s sell-off has whacked all seven of the “Magnificent Seven” mega tech stocks. Every one of them is down 10% or more.
With concentration as high as it is, these 10stocks have dragged the entire index down.
U.S. investors should consider themselves fortunate.
Looking at the rest of the world, for all of our talk about the Mag 7, concentration in the U.S. market isn’t that bad:
The U.S. has one of the lowest market concentrations when compared to its global peers. The top 10 stocks in the S&P 500 make up to 40% of total market cap. (Source: Bloomberg Intelligence)
Wild swings in the South Korean market last week were the result of a few hard drive and memory chip manufacturers making up 40% of that country’s index.
The biggest offender? Singapore, where the country’s top 10 stocks make up a whopping 80% of the market cap.
In the U.S. market, an equal-weighted S&P 500 Index tracking fund, like the Invesco S&P Equal Weight ETF (RSP), will take some of the sting out of big moves in highly concentrated sectors like tech.
As of yesterday’s close, RSP is down 0.3% year to date. Not great. But better than the 5.4% decline in the Mag 7-heavy S&P 500.
Forecast: Market turmoil will continue, at least through the midterms. The war in Iran provides its own level of crazy. Being equally weighted will provide a safer return than a concentrated market bet, for now.
~ Addison
P.S. If you’re also looking to pack your bags and set off for new horizons, you’re in luck.
On yesterday’s Grey Swan Live, we dove into international real estate with the piece we filmed in Panama. We sat down with Ronan McMahon at The Gathering, hosted by Ronan and our friends at Real Estate Trend Alert (RETA).
RETA members are able to get exclusive discounts on real estate projects in top destinations like Panama, Mexico, Portugal and more.
We’ll be publishing the 2026 RETA Index report with Ronan’s top destinations to buy in 2026, along with the replay.
Ronan and his team will also make their masterclass in international real estate available to paid-up members of the Grey Swan Investment Fraternity.
This masterclass is your complete road map to owning overseas in 2026. In six videos, they will take you through everything you need to know, starting right at the beginning.
They aren’t holding anything back. Ronan is sharing all the key lessons he’s learned in two and a half decades of buying and scouting real estate overseas.
