The seven largest tech giants in the S&P 500, known as the “Magnificent Seven,” have been a major force behind the market’s gains in recent years.
However, this year tells a different story, with the group down 14% and entering a correction, underperforming the broader market. This reversal serves as a reminder that higher upside potential often comes with greater volatility.
While these stocks remain influential, overreliance on a few names can amplify risk. Our RiskFirst® approach emphasizes the importance of diversification and risk management for navigating shifting market conditions to help you reach your long-term goals.
The Magnificent Correction
- We believe the preservation of capital is key to consistent, long-term investment success.
- Our investment approach is grounded in economic theory and backed by quantitative analysis.
- Managing drawdown risk is a pillar from which we build our portfolios.
60-Second Breakdown: March 3, 2025
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
Best Invest Advise EVER!
Bryan Bourgeois, CEO/Founder of Shorebreak Capital, discusses why 90% of investors fail and how to avoid these common investment mistakes with Conner Small, Partner at Redwood Investment Management, Shorebreak Capital’s dedicated asset manager.
