By Liam Fitzgerald, CFP^®*

As a busy doctor, keeping an eye on your financial health extends beyond just your practice's operations to include your investments. Recently, the buzz in the investment community has centered around the exceptional performance of a select group of seven stocks, commonly referred to as "The Magnificent Seven." These seven stocks include Alphabet (Google), Amazon, Apple, Meta (Facebook), Microsoft, Nvidia, and Tesla, and are the heavy hitters in the S&P 500 Index, which is a collection of 500 of the largest companies listed on the U.S. stock exchange.

Imagine these seven companies as the most sought-after dental practices in a large city, drawing the most attention and, consequently, becoming the talk of the town. In 2023, the broader S&P 500 Index gained 24%. However, these elite seven stocks soared, providing stellar returns of 111%. In contrast, the other 493 companies, akin to smaller dental practices, lost money in 2023. This stark contrast showcases the significant impact these top performers have on the broader S&P 500 Index.