Peter Brown: Investing in the ‘Magnificent 7’ is just too risky

Many Irish pensions and other passive general investment schemes have the largest equity exposure to the Magnificent 7 stocks for no good reason

Earlier this week, Apple shares fell while Meta and Amazon soared on key earnings.

The group of stocks known as the “Magnificent 7” which includes Apple, Microsoft, Amazon, Nvidia, Google-owner Alphabet, Tesla, and Meta which owns Facebook, make up nearly 30% of the S&P 500 index.

The group trades on an average price to earnings ratio of a whopping 46. If you buy that group of stocks, you are paying 46 years’ worth of current earnings for it.