Marcos Milla
Former Analyst at the Federal Reserve, ETF/Stock Newsletter Author
The Magnificent Seven are now responsibly priced after being expensive, and in two years today's prices will look like an obvious buy. US tech now trades at a PEG ratio below almost every other index. x.com x.comÂ
The Nasdaq 100 looks set for a persistent uptrend after hitting a new record, which favors 3x leveraged exposure through TQQQ. After three choppy months, funds are refocusing on what matters while positioning and sentiment remain lopsided and weak, making a rise likelier than more chop and possibly another major bull run. Leveraged ETFs compound in steady uptrends but lose to friction in chop, as TQQQ's 136% gain against QQQ's 35% in April-May showed. Gulf tensions still need to end. x.com x.comÂ
MAGS's seven major holdings are betting heavily on AI, guided by leaders with the best view of its future. There is no doubt the ETF will have its best year in 2027 or 2028, despite today's skepticism. x.comÂ
For most individual investors, ETFs tracking the S&P 500 or a world index are the best way to build wealth, with at least 50% of a portfolio there. A concentrated portfolio of 5-10 stocks, mostly AI-buildout names, could work for skilled stock pickers but could also suffer a 70% drawdown, and most people lack the skill, patience or funds to handle the swings of growth stocks. x.comÂ
The Magnificent Seven's bull run is only starting, because investor sentiment is unusually bearish even as the group closes at all-time highs. AAII bearish sentiment is at its 2026 high, a level last seen in April, the same squeeze setup that preceded the prior run. For Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla, this is the time to increase market exposure, not cut it. x.com x.comÂ
The Magnificent Seven ETF has drawn its largest institutional buying volumes ever over the past six months, while low-conviction traders misprice it on short-term uncertainty. It has now hit a new all-time high, and the setup favors steadily dollar-cost averaging in. x.comÂ
The Magnificent Seven will likely fly as concern grows over a September rate hike, which would hit high-beta stocks more than the big names. There is always rotation, and Apple, Amazon, Microsoft, Meta, Alphabet, Nvidia and Tesla stand to gain from it. x.comÂ
Low-cost growth ETFs can build serious wealth through exposure to the best companies and strongest trends, without managing individual stocks. A clean setup is a core of VOO or VTI, a growth tilt through SCHG, VUG or QQQM, and an aggressive tech tilt through VGT. The ranking is SCHG, VUG, QQQM, SPYG, VGT, MGK, then IWF, which is solid but costlier. Many overlap, so owning all adds little diversification, and growth-heavy funds can be hit hard by rising rates, tech selloffs or rotation to value. … Show more
The Magnificent Seven look better than grid and electrical equipment stocks, which carry some of the most egregiously high valuations. That group spans power equipment such as GE Vernova and ABB, switchgear from Powell and Eaton, cooling and panels from Vertiv and nVent, plus modular nuclear, fuel cells and batteries. A failed breakout on Eaton's weekly chart would be a big blow to the AI trade. x.com x.comÂ
Most retail investors who hold concentrated portfolios underperform a diversified benchmark like VOO. Depending on the study, typically 70-85% or more of those holding 10 or fewer stocks trail it most of the time, because of behavioral biases, higher volatility and missing the skewed winners that drive market returns. x.comÂ