Bloomberg ETF analyst Eric Balchunas says the "Mag 7 concentration risk" narrative is overblown.
His take: They're not 7 companies—they're the "Magnificent 700."
Why? $MSFT and $GOOGL alone have each acquired ~270 companies throughout their history. These aren't just tech plays—they're empires spanning cloud, ads, software, AI, and more.
The Mag 7 now make up ~33% of the $SPX market cap.
So when people scream "bubble," remember: you're not betting on 7 stocks. You're betting on 700+ businesses under one ticker.
Diversification through acquisition. That's the real alpha.
His take: They're not 7 companies—they're the "Magnificent 700."
Why? $MSFT and $GOOGL alone have each acquired ~270 companies throughout their history. These aren't just tech plays—they're empires spanning cloud, ads, software, AI, and more.
The Mag 7 now make up ~33% of the $SPX market cap.
So when people scream "bubble," remember: you're not betting on 7 stocks. You're betting on 700+ businesses under one ticker.
Diversification through acquisition. That's the real alpha.