Preparing for the Unknown: My 2026 Outlook and the Mag 7 Trade

Saturday, Jan 17, 2026 1:07 pm ET1min read
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In 2026, the Mag 7 stocks (AMZN, MSFT, AAPL, META, GOOG, and ORCL) are expected to underperform due to rising costs of AI leadership and valuation adjustments. The stocks' combined net cash position has collapsed from $300 billion in 2017 to less than zero. The pace of spending on R&D and data centers is increasing, making it harder for the stocks to maintain their dominance. The Mag 7 stocks remain dominant but their valuations reflect that dominance.

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