Why diversification is beating lagging tech stocks in 2025
Big Tech has been under pressure, especially as the "Magnificent Seven" — the group of tech stocks comprising Alphabet (GOOG, GOOGL), Apple (AAPL), Nvidia (NVDA), Tesla (TSLA), Amazon (AMZN), Meta Platforms (META), and Microsoft (MSFT) — enter correction territory. However, investors who have moved away from tech stocks have outperformed the S&P 500 (^GSPC). Edward Jones senior investment strategist Angelo Kourkafas joins Morning Brief hosts Seana Smith and Brad Smith to discuss the outlook for Big Tech moving forward. "It speaks to the resilience of the market that even with the Magnificent Seven lagging the S&P, we still have a market that is up for the year, and we thought all along that earnings will have to do the heavy lifting, not valuations, and that so far has proven to be the case," Kourkafas says. He also highlights diversification as a key strategy for investors. "Investors can diversify and actually find areas that have this catch-up potential even without relying only on the AI trade, which is still an important one," he adds. Kourkafas additionally discusses broader economic trends while also seeing modest growth continuing in the US despite some slowing. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Josh Lynch
