The economist who coined the phrase ‘Magnificent 7’ says the very thing that made them extraordinary is under threat

It was May 2023 when Bank of America's Michael Hartnett took inspiration from the Wild West, coining the phrase "Magnificent 7" for a group of American companies that have proved to be the main driver of the stock market during an AI boom. And while the Mag 7—Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla—remain dominant forces in the asset class, Hartnett now says that the very thing which once made them a portfolio "must" is now a vulnerability. Fiscal excess led investors to put their money toward something more sustainable, BofA's chief investment strategist suggested in a recent episode of the Master Investor podcast. He said: "To a certain extent, the rise of the Mag 7 was because nobody wanted to hold government bonds.