The S&P 500 is now being driven mostly by the AI story, with the 10 biggest stocks now making up 41% of the index’s market capitalization. As for performance, profit margins for the Magnificent 7 have been revised up over the last year, whereas the opposite has happened in the S&P 493.
It means that the S&P 500 no longer offers the diversification it once did. The exposure to AI is immense. That provides great opportunities for continuous growth if the AI story unfolds positively, but if it does not, then the burden will be felt all across the U.S. economy and globally.
New World Investment Research 
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