Remember when tech stocks only seemed to go up? The so-called Magnificent Seven — Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla — have now lost nearly a third of their combined value since December.
Goldman Sachs analysts even dubbed them the “Maleficent Seven.” Despite some signs of stabilization, more trouble could be ahead, according to The Economist.
With markets this volatile, many investors are rethinking their strategy. If you have at least $100,000 in investments, you may like to check out a free service called SmartAsset. You fill out a short questionnaire and instantly get matched with up to three vetted financial advisors in your area.
1. A lot of investors still own their stock
When everyone crowds into the same investment, getting out can be a messy process.
Many institutional investors still own substantial positions in these stocks even after the recent decline. This creates a serious vulnerability that hasn’t disappeared.
In times like these, diversification becomes even more critical to protect your portfolio from the volatility of overcrowded trades. One modern way to diversify is with real estate and venture capital. Companies like Fundrise offer investments as small as $10. Note: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on moneytalksnews.com. All opinions are our own.
2. An increase in tariffs could hit profits hard
