The meteoric rise of a handful of tech stocks has many investors wondering whether the stock market is in a bubble. Bubbles have been the bane of investors since tulips took off in the 1600s, and they rarely end well. Obvious in retrospect, bubbles are notoriously difficult to recognize when you’re in one.
Here’s what we do know: The so-called Magnificent Seven (Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia and Tesla) led the S&P 500 charge upward in 2023. And so far in 2024, the broad benchmark’s gains have been ferocious.
