Giggity! Magnificent Seven Stock Prices Drop Faster Than My Pants!

S&P 500: A Wild Ride Giggity!

Well hello there! Quagmire here ready to dive into the world of stocks which let me tell you are almost as unpredictable as my dating life. Apparently the S&P 500 has done a full circle since the beginning of the year like me trying to remember where I parked after a wild night. It tanked it rallied it's practically doing the cha cha. After dropping 20% (like my standards after three beers) it bounced back. Now it's just 3% shy of its record high. Oh and it's up by 0.8% for the year not including dividends. Giggity! That's almost enough for a fancy dinner... for one.

The Magnificent Seven: More Like the Surprisingly Affordable Seven!

So there's this dame Marta Norton from Empower Investments who says the 'Magnificent Seven' stocks—you know the big boys like Nvidia and Apple—are actually cheaper than they were at the start of 2025. What? It's like finding out that the hot blonde at the bar is actually into older guys like me! She says that at the start of the year they were too expensive and now after a bit of a rally they're cheaper than the rest of the market. It's a 'weird dichotomy,' she says. Sounds like my Tuesday nights Giggity!

Nvidia's Price Drop: I Know That Feeling!

Let's talk numbers baby! Nvidia started the year with a forward P/E of 31.3 and now it's at 29.6. Apple went from 33.0 to 26.6. Alphabet (Google's parent company) went from 21.1 to 17.7. And Amazon? Oh mama! Down from 35.2 to 31.3. It's like they're all trying to impress me with discounts! Only Meta Platforms and Microsoft are trading higher than they were at the end of last year. Good for them! But this is the part where I say Giggity!

The Rest of the Market: Overpriced and Overhyped!

Meanwhile the rest of the market is getting a little too big for their britches. Consumer staples are up from 18.6 to 19.9. That’s like finding out your favorite beer just raised its price. The 'Magnificent Seven' being cheaper suggests there's still some life left in the market since they make up about 30% of the S&P 500. If I have money to invest that's where it is going.

Rangebound for the Rest of the Year? Don't Count On It!

But Norton (the one from Empower Investments) doesn't think the market will go much higher in 2025. She thinks the S&P 500 will be 'rangebound' due to expensive valuations in the rest of the market and those pesky tariffs. Of course any recovery from the 'Magnificent Seven' could help. But she's still worried about the other 70%. She sounds like Lois worrying about Peter. Giggity!

Wall Street Worries: Panic at the Disco!

And it's not just Norton raising alarms. Some guys at UBS (I don't know them) are saying that after Nvidia's latest earnings beat the market is 'priced for perfection' and could crash if there's even a little bad news. Sounds like someone is ready to be disappointed oh yeah!