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DailyBubble News

The biggest risk to investing in Mag 7 stocks like Nvidia and Amazon, according to top CEOs

Investors at the Milken Institute Global Conference were buzzing about the risks associated with the popular tech stocks known as the Magnificent Seven. Marc Lasry, the founder of Avenue Capital Group, highlighted the potential downside of overcrowding into stocks like Nvidia, Microsoft, Apple, Amazon, Google, Meta, and Tesla.

Lasry, a seasoned investor with a net worth of $1.9 billion, cautioned against the trend of flocking to familiar tech names during uncertain times. He emphasized the opportunities in the credit market, drawing on his 40 years of experience in the industry.

The Mag Seven, as they are commonly referred to, played a significant role in driving the S&P 500’s gains in the first quarter of the year. In 2023, these stocks accounted for a large portion of the index’s overall growth.

From DailyBubble’s perspective, it’s important for investors to diversify their portfolios and not rely too heavily on any single sector or group of stocks. While the Mag Seven have been performing well recently, it’s essential to consider the potential risks and explore other investment opportunities.

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