By: Steve Smith
Indeed, this new acronym has supplanted the old FANG gang, with Microsoft and Apple replacing “Facebook (FB)” and “Netflix (NFLX)” for good reason; the former, which can both be considered old guard tech from pre-dot.om days, have gained whopping 85% and 120% in just the past 52 weeks while the latter have only eked out 20% and 13% gains over the same period.
The impact has not been just psychological but has had very real, and some would say unhealthy, impact on investor behavior and stock market performance.
Over the past 52-week MAGA has accounted for nearly 70% of the S&P 500 Index’s 37% gain. And an eye popping 76% for the Nasdaq 100.
The market is getting increasingly top heavy with the top 2, 5 and 10 largest capitalization stocks now accounting for record representation of the overall market—the top 5 of the S&P 500 Index is now near 18%, a decade high.
As you can see, over the last decade the FAAMG stocks have increased their share of the S&P 500 from 7% to 17%. These tech giants, which used to be valued at $650 billion in 2010, are now worth nearly…
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