There are plenty of stocks other than the so-called “Magnificent Seven” that are currently attractive, top money managers told CNBC on Thursday. The mega-cap tech stocks that make up the “Magnificent Seven” — Apple, Alphabet, Meta, Microsoft, Amazon, Nvidia and Tesla — each gained at least 48% last year. They represent about a quarter of the total market share of the S&P 500. While these stocks may still see strong growth, there should be a broadening rally and other stocks expected to do well, Bryn Talkington said, managing partner at Requisite Capital Management, in a CNBC Pro Talks interview with Bob Pisani. On the one hand, software stocks like Salesforce are adjacent to the Magnificent Seven, have performed well and have a “very long trajectory,” she said. Other than that, she likes the Invesco S&P 500 Equal Weight ETF (RSP) to benefit from this broad access. “We bought it this year, because we’re saying, ‘Hey, these are cheap stocks. We’re going to own 500 large-cap stocks, we’re just treating them as equals,'” Talkington said. Meanwhile, Kevin Simpson, founder and chief investment officer at Capital Wealth Planning, likes “old-school” tech names such as Broadcom, Cisco and IBM. “They’ve made acquisitions that bring them into the 21st century,” he said. “Until things get to this scale, getting a very strong, consistent and growing dividend is something that makes us very comfortable as shareholders.” Talkington also likes dividend names, such as energy stocks. One name on its list is Diamondback Energy. “This company is a free cash flow yield giant,” she said. The energy names Simpson owns are Chevron and ConocoPhillips.
Fund managers are picking stocks for 2024 that aren’t part of the Magnificent Seven
