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Billy Duberstein, The Motley Fool
Sun, Mar 23, 2025, 3:30 PM 8 min read
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The technology-heavy Nasdaq Composite scale presently finds itself successful correction territory. A banal marketplace correction occurs erstwhile the marketplace falls 10% oregon much from its all-time highs.
Should investors bargain the dip? There is simply a accidental the caller pullback volition crook into thing worse, specified arsenic a prolonged carnivore market. However, astir 10% corrections resoluteness themselves comparatively quickly, making them large times to prime up high-quality companies for the agelong haul.
That means for those looking to adhd to their semipermanent portfolios, high-quality stocks successful the "Magnificent Seven" group, which has pulled backmost on with the market, mightiness beryllium large pickups today. Of these 7 all-star companies, 1 ultra-safe sanction looks similar the champion of the clump astatine this opportune moment.
Over the past 10 years, the Nasdaq has corrected six times, bully for astir erstwhile each 1.67 years. So, the bully quality is that a correction is simply a regular, possibly adjacent healthy, portion of markets.
On the different hand, sometimes corrections crook into a full-fledged carnivore market, which is simply a correction of much than 20% and usually lasts overmuch longer than specified corrections.
It remains to beryllium seen whether the existent pullback is simply a prelude to thing worse. Investors volition apt not cognize until April 2, erstwhile the Trump administration's reciprocal tariffs connected Mexico and Canada are expected to spell into afloat effect. Even if they do, however, it remains to beryllium seen whether they volition origin a full-blown carnivore market.
Given the highly uncertain interaction of tariffs, investors looking to adhd to their banal portfolios astatine this infinitesimal should instrumentality with high-quality, comparatively "safe" stocks that have, nonetheless, experienced pullbacks but could besides upwind a full-blown recession if it comes to pass. That's wherefore the pursuing Magnificent Seven banal looks truthful charismatic close now.
Microsoft (NASDAQ: MSFT) is the second-largest institution successful the satellite contiguous and a staple of galore exertion portfolios, but that doesn't mean the institution can't outperform going forward.
Microsoft is 1 of conscionable a fewer companies vying for artificial quality (AI) supremacy. Given the monolithic concern required to vie successful the contention for artificial wide quality (AGI), it's not retired of the question to deliberation the precise largest companies could go adjacent much almighty 10 years from now. After all, radical person been wondering whether the instrumentality of ample numbers would drawback up with the Mag-7 stocks for a while. Yet, these incredibly innovative companies person defied skeptics and managed to innovate their mode to outsized nett maturation implicit the past decade.