I love the smell of volatility in the morning. Straight-up markets worry me. But price pullbacks and a little turbulence? That gets my value-biased instincts fired up. There’s nothing better than the chance to buy great companies (or other strategies) that once felt out of reach at prices that are now lower—stocks/investments everyone loved when they were soaring but now seem to be losing a little luster in the headlines.

Take the recent market dynamics, for example, which have brought the "Magnificent Seven"—Apple, Microsoft, Amazon, Alphabet, Meta Platforms, Nvidia, and Tesla—into sharp focus. These tech titans, renowned for their significant contributions to the S&P 500's performance, have experienced notable fluctuations, prompting discussions about potential entry points for discerning investors.​[i]

Market Performance Overview

Over the past week ending February 28, 2025, the major indices exhibited varied performances[ii]:​

The Nasdaq's decline underscores the pressures faced by technology-centric stocks, including the Magnificent Seven.​

The Magnificent Seven: Current Standings

To provide perspective on their recent performance, here's a comparison of each company's current stock price relative to its 52-week high as of February 28, 2025:​

Note: Current prices as of February 28, 2025.

​

Quality Companies and Investment Considerations

The Magnificent Seven are lauded for their robust fundamentals and market leadership:​

• Apple: A leader in consumer electronics with a strong ecosystem.​
• Microsoft: Dominant in software and cloud computing services.​
• Amazon: E-commerce giant with a significant cloud services division.​
• Alphabet: Parent company of Google, excelling in search and advertising.​
• Meta Platforms: Pioneer in social media and virtual reality.​
• Nvidia: Leading designer of graphics processing units (GPUs).​
• Tesla: Innovator in electric vehicles and renewable energy solutions.​

While these companies have historically driven market gains, it's essential to recognize that stock prices are subject to corrections. Such pullbacks can present opportunities for investors seeking entry points into high-quality companies. However, it's crucial to approach these opportunities with caution and not view them as direct recommendations to buy.​

Technological Advancements on the Horizon

In addition to market movements, the news around technological innovations continue to shape the market and these companies' trajectories. Big news recently in Quantum Computing and Cryptocurrencies:​

• Quantum Computing: Companies like Google, Amazon, and Microsoft are making strides in developing quantum chips. While the timeline to mass adoption of Quantum, like we have seen with AI of late, remains uncertain, the potential of quantum computing to revolutionize industries is immense.​
• Cryptocurrency Strategies: Last week's announcements regarding cryptocurrency potentially becoming a US Reserve asset is may solidify a growing institutional interest in digital assets. Details are forthcoming, but this development could influence future market dynamics, not only for the prices of cryptocurrency but the underlying supportive infrastructure. So while you may not want to speculate on crypto, you may want to consider how to benefit from the infrastructure investment. Akin to not buying gold as your investment but rather selling the picks and axes to the gold miners.

Defining Investments and Considering Hedges

At Members’ Wealth we typically define investments as assets that generate cash flow, such as businesses, real estate, or bonds. In contrast, assets like gold, fiat currencies, and cryptocurrencies like Bitcoin don't produce cash flow on their own and in our opinion really only have value based on the value others perceive them to have. However, they may serve as hedges against specific risks:​

• Inflation: Assets like gold and Bitcoin are often viewed as stores of value during inflationary periods.​
• Currency Devaluation: Cryptocurrencies can offer alternatives when confidence in fiat currencies wanes.​
• Geopolitical Uncertainty: Tangible assets like gold may provide stability amid geopolitical tensions.​

So like the Magnificent 7, for those that look to Hedges for not only hedging but for investment opportunities as well, you might want to be looking a little closer of late, given the recent levels of volatility.

Final Thoughts

While price corrections can be unsettling, they also offer opportunities for strategic investors, who can embrace the volatility. Monitoring high-quality companies (or hedges) during these volatile periods allows for informed decisions aligned with long-term investment goals. As always, it's essential to conduct thorough research and consult with financial advisors before making investment decisions.​

Stay informed, stay prudent, and navigate the markets with confidence.

[i] Mellon Investments Corporation. Stormy Skies Ahead – February 2025. Retrieved from https://www.mellon.com/insights.html

[ii] MacroTrends. S&P 500 Historical Annual Returns. Retrieved from https://www.macrotrends.net/2526/sp-500-historical-annual-returns

YCharts. Nasdaq Composite Performance & Stats. Retrieved from https://ycharts.com/indices/%5EIXIC

Slickcharts. Dow Jones YTD Return. Retrieved from https://www.slickcharts.com/dowjones/returns/ytd

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. 
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

About the Author – Dane Czaplicki, CFA®

Dane Czaplicki is CEO of Members’ Wealth, a boutique wealth management firm that offers a comprehensive approach to serving individuals, families, business owners, and institutions. The firm’s goal is to preserve and grow its clients’ wealth to endure over time, while thoughtfully evolving its strategy to suit an ever-changing world. With over 20 years of wealth management experience, Dane and the Members' Wealth team thrive on bringing clarity and confidence to clients' unique situations. He believes everyone needs sound financial advice from someone whose interests are aligned with theirs, and is determined to put service before all else.

Dane received his MBA from The Wharton School of Business at the University of Pennsylvania and his bachelor’s degree from Bloomsburg University. Outside work, he enjoys spending time with his wife and kids, hiking and camping, reading, running, and playing with his dog. To learn more about Dane, connect with him on LinkedIn.

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