What's Next For Markets What is Outperforming? Navigating Markets in the Era of the Mag Seven
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Nov 9, 2025 Emily Needell, Deputy Chief Investment Strategist at Piper Sandler, shares her insights on the dominance of the 'Mag Seven' mega-cap stocks. She discusses their jaw-dropping returns, like Nvidia's staggering 40,000% gain over the last decade. The conversation dives into how this concentration distorts market breadth and what it means to truly outperform today. Emily also highlights the impact of passive investing on the mega-caps and offers a hopeful outlook on the potential for improved market breadth in the coming years.
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MAG7 Dominates Client And Cocktail Conversations
- Emily Needell describes MAG7 conversations dominating client and social interactions, showing how pervasive the topic is.
- She emphasizes that 'the big keep getting bigger' as a theme people repeatedly mention.
MAG7's Unprecedented Decade Of Returns
- The MAG7 have dominated conversations and returns for years, becoming nearly unavoidable topics for investors.
- Their decade-plus performance is extraordinary, with Nvidia up ~40,000% and even the weakest MAG7 returning ~700% versus the S&P 500's ~230%.
Concentration Has Crushed Market Breadth
- Ten very large stocks now dominate the S&P 500, causing extreme concentration and poor market breadth over recent years.
- Over the past three years, on average only about a third of S&P 500 stocks have kept up with the index, showing historically narrow breadth.