
Everybody’s heard of the S&P 500, but maybe what’s more relevant is the S&P 493. Hello, my name’s Paul Carroll, the CEO and founder of Avion Wealth, an elite wealth management firm here in South Texas. We all consider the S&P 500 to be an important benchmark for investing activities. However, the 493 might be more accurate, and that’s because there are seven stocks, and we call them the Magnificent Seven that significantly distort this index. You’re familiar with these companies, Apple, Microsoft, Amazon, Google, Facebook, or Meta, Tesla, and NVIDIA. I just read yesterday, NVIDIA’s chips for AI are selling $40,000 for a little chip. So that’s the Magnificent Seven. Valuation wise, they make up 29% of the index, despite only being 1.4% of the 500 stocks, and that’s because the S&P 500 index is what’s known as a cap weighted index. So the Magnificent Seven make up…
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