Buying an S&P 500 tracker means investing 30% of the money in just seven stocks

 Without Apple, Microsoft, Alphabet, Amazon.com, Nvidia, Tesla and Meta Platforms—the high-growth, technology-related companies that analysts have dubbed the “Magnificent Seven”—the S&P 500 would only be up 9% this year, rather than 19%. 

Some 44% of stocks in the index are down this year.

This not only runs counter to the principle of diversification, but it also means the most important stocks investors own are pricey. The seven stocks have posted strong profits lately, but they are still trading at an average of 32 times forward earnings,

That poses a conundrum for investors, who increasingly use index funds. 

WSJ 5 December 2023

https://www.wsj.com/finance/stocks/how-long-can-the-magnificent-seven-stocks-hold-the-line-0e9b5485

The Fangs have delivered spectacularly in the past couple of years. 

https://englundmacro.blogspot.com/2017/11/the-fangs.html

Indexfonder är en fara för aktiemarknaden och gör börsen till ”rena Solvalla”, enligt finansmannen Christer Gardell

Being wrong and alone is what gets asset managers fired.

https://englundmacro.blogspot.com/2023/08/indexfonder-ar-en-fara-for.html