The Magnificent Correction

Matthew Allgood |

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The seven largest tech giants in the S&P 500, known as the “Magnificent Seven,” have been a major force behind the market’s gains in recent years. However, this year tells a different story, with the group down 14% and entering a correction, underperforming the broader market. This reversal serves as a reminder that higher upside potential often comes with greater volatility. 

While these stocks remain influential, overreliance on a few names can amplify risk. Our RiskFirst® approach emphasizes the importance of diversification and risk management for navigating shifting market conditions to help you reach your long-term goals.

The Magnificent Correction

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Source: Bloomberg, Redwood. Data as of 2/28/2025. Date range from 6/30/2023 - 2/27/2025.

Regards,

Allgood Financial

Disclosure: This piece is for informational purposes only and contains opinions of Redwood that should not be construed as facts. Information provided herein from third parties is obtained from sources believed to be reliable, but no representation or warranty is made as to its accuracy or completeness. Charts and graphs are for illustrative purposes only. Discussion of any specific strategy is not intended as a guarantee of profit or loss. Past performance is not a guarantee of future results. The objectives mentioned are not guaranteed to be achieved. Investors cannot invest directly in any of the indices mentioned above. Diversification of asset class is not a guarantee against loss. RiskFirst® is a registered trademark of Redwood Investment Management, LLC.

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