A CIO overseeing $1.4 trillion breaks down why the Magnificent 7’s run may soon be over — and shares 2 trades he’s betting on for the years ahead

• SEI’s CIO predicts an eventual end to the run of the Magnificent Seven stocks.
• High valuations and competition may cause these stocks to lose leadership in the market.
• Smiegel sees potential in energy and financial stocks due to attractive valuations and fundamentals.

The Magnificent Seven stocks — Apple, Amazon, Microsoft, Nvidia, Alphabet, Tesla, and Meta — and their massive market capitalizations have been responsible for most of the S&P 500’s gains since late 2022 as investors have piled into artificial intelligence stocks.