2024 Outlook: Can the "Magnificent Seven" Stocks Maintain Their Dominance?

The Magnificent Seven tech stocks, including Amazon, Apple, Alphabet, Nvidia, Meta, Microsoft, and Tesla, have dominated the headlines and outperformed expectations in 2023. However, with the Federal Reserve signaling an end to rate hikes, Envestnet Co-Chief Investment Officer Dana D'Auria suggests that investors should broaden their portfolios with smaller cap stocks, as many companies have yet to figure out AI and the expectation of a rapid AI boom may be too optimistic. D'Auria recommends a tilt towards small value stocks, which historically have higher expected returns and tend to outperform inflation over time.