Would Investing $10K in the Magnificent 7 Stocks in 2023 Have Made You Rich?
Considerable Gains With the Magnificent 7
As a whole, the Magnificent 7 stocks would have more than doubled your money over the past 2 1/2 years. Individual stocks within the Magnificent 7, however, would have multiplied your money exponentially.
Nvidia, for example, single-handedly blew away the returns of both the S&P 500 and the other stocks within the Magnificent 7, returning a massive 891%. If you had invested $100,000 in Nvidia at the end of 2022, you’d be sitting on a nearly $1 million portfolio in just 2 1/2 years.
The bottom line is that yes, investing any amount of money in the Magnificent 7 stocks at the start of 2023 would have earned you considerable gains. While some analysts are predicting more gains ahead, bear in mind that to earn these types of returns, you have to take on considerable risk.
In 2022, for example, the Magnificent 7 stocks dropped 40% as a whole, with some of its individual components losing more than 65% of their value. As high reward comes with high risk, be sure that investing in the Magnificent 7 stocks matches up with your financial objectives and risk tolerance.
Editor’s note: All historical closing prices were adjusted for splits, dividends and capital gain distributions, and were sourced from Yahoo Finance.
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