The Magnificent Seven, representing 40% of the Nasdaq 100, is an extreme example of industry concentration. The market cap of Nvidia alone was $3 trillion at one point, vying with Apple and Microsoft as the world’s most valuable company. So much for diversification. Great when tailwinds are supporting that sector, but when they’re not you may get caught in a downdraft.

Are valuations in AI and tech overblown? We look to the experts for that answer. But concerns about rapid climbs in stock prices can lead to pullbacks, as we saw this week when NVDA (Nasdaq) lost $430 billion of value in three days. Such is life in the fast and furious tech lane…

▶︎ Read June 24th 2024 Newsletter: here