It's All Relative

Looking at Mag7 through a different lens

Earlier this week I had an discussion with a very sharp gentleman I’ve had the good fortune to get to know over the past few years. As we were discussing the Rollover Syndrome, he asked me if I had taken a look at Mag7 relative performance, and frankly I was surprised that I had not thought to do so. He does not want to be named, so I will thank him anonymously here for jogging my brain with the notion.

Today’s note will be a brief one — a few charts of Mag7 against the S&P 500. While these seven names have been allowed to become the market by Standard & Poors for all practically purposes (currently over 32% of the S&P 500, with far-reaching implications including just how little diversification benefits can be achieved with major benchmarks anymore), the majority of them have actually gone nowhere for a few years now on a relative basis.