Bloomberg Surveillance · Wednesday, July 8, 2026
The 'MAG Seven' construct in the market is considered 'dead,' with the potential for an expanded 'MAG Eight' or 'Nine.' For the broader market to reach higher indices, participation needs to broaden beyond AI-related stocks to more macro and economically sensitive sectors. While oil prices fading could ease inflation, the AI trade is expected to return later in the year.
“So when you look at this, the MAG seven and I would say first up front that we think the MAG seven construct is dead, We think it's gone. We've gone to MAG eight, and we could probably go to nine or ten if we wanted to in terms of the way some of these memory semiconductor related companies have appreciated of late.”
“But the path here really requires two things. Number One, you need the broadening effect to kick in that other half of the market that's not attached to AI, that's more traditionally macro and economically sensitive driven. We think that is where there's opportunity right now. But number two, to your point, the MAG seven, coming back to the construct I think is dead, is essentially traded roughly flat here today, and that's forty percent of the index.”
“So we do have a setup here. We're going into the second half and we've got, you know, roughly six months to go. Is this broadening effect to take hold. On one hand, as we wind down Aroan, which I know is back in the news flow this morning. But as oil price is fade, we think that takes pressure off of inflation. But then as you go further into the year, we do think there's opportunity for the AI trade once it digests a lot of these issues that were tending with currently to kick back in and the combination of the two is how we get that sort of mid upper single digit move into the end of the year.”