All They Had to Do Was Buy The Mag 7

Nonsense Debunked, Chart of the Week

Author

Michael Batnick
June 06, 2025

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It’s never been easier for individual investors. All they had to do, really, was buy and hold the magnificent 7 stocks and enjoy the ride.

In my opinion, this line of thinking is misguided and whitewashes the difficulty in holding these stocks over the last couple of years.

So I had Matt make this chart of the week over at Exhibit A, which shows the drawdowns during 2022 and earlier this year. No further commentary needed, this picture says a thousand words.

Interestingly, retail investors allocations to these stocks have declined dramatically over the past year, from 10% at its peak to under 2% today. I wonder where this money is going.

I’m still on cloud nine from the Live Compound & Friends we did in Chicago this week. First, Josh, Callie, Ben, and I spent some time talking about the biggest surprises from the first half of the year. Then, we had spoke with Kunal Kapoor, CEO of Morningstar, about how AI is changing finance, access to private markets, and much more. He was awesome, I think you’re going to love it.

Hope everybody has a great weekend!