Is Diversification a Myth? Apollo Highlights 401(k) Risk Linked to Magnificent Seven Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 09 2025
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Source: SeekingAlpha
Concerns about Retirement Savings Diversification: Apollo Global Management's chief economist, Torsten Slok, warns that many American workers may be less diversified in their retirement savings than they believe, with a significant portion of 401(k) contributions concentrated in a few dominant technology stocks.
Impact of Passive Investment: Slok highlights that approximately 71% of 401(k) assets are allocated to equities, with nearly 40% of the S&P 500's weighting coming from the "Magnificent Seven" tech giants, potentially increasing investors' exposure and undermining the benefits of diversification.
Analyst Views on MAGS
Wall Street analysts forecast MAGS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MAGS is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 64.930
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Current: 64.930
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
