Stocks (^GSPC, ^IXIC, ^DJI) face pressure Wednesday morning in relation to President Trump's latest tariff proposals.
Prime Capital Financial deputy chief investment officer Will McGough joins Wealth to emphasize the importance of portfolio diversification.
"Diversification matters more than ever this year," McGough says, highlighting the market volatility and uncertainties being attributed to the second Trump administration.
McGough advises a shift from the growth-heavy Magnificent Seven components — the group of tech stocks comprised of Alphabet (GOOG, GOOGL), Apple (AAPL), Nvidia (NVDA), Tesla (TSLA), Amazon (AMZN), Meta Platforms (META), and Microsoft (MSFT) — to broader, value-focused companies that are less volatile.
"Earnings growth numbers are hit right now. But, I would say that we're at peak earnings growth. It's hard for it to exceed the teens that we're in right now, and so I think you're going to see a rotation," McGough explains. "So being diversified across core large-cap equities and also looking in the small caps is a prudent play,"
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He also weighs in on Nvidia's (NVDA) earnings expectations ahead of the chipmaker's fourth quarter release next Wednesday, February 26.
To watch more expert insights and analysis on the latest market action, check out more Wealth here.
This post was written by Josh Lynch