The article discusses the declining interest in high-multiple growth stocks, particularly those from the 'Magnificent Seven,' against the backdrop of a market correction. As enthusiasm around AI diminishes, there’s a suggestion that small-cap stocks may gain traction. Investors looking for better performance in a likely challenging market year may be encouraged to diversify into small-cap value ETFs. The article highlights specific ETFs, VBR and RZV, as promising options for those looking to reduce their reliance on large-cap tech stocks and capitalize on a potential market rotation.
Investors seeking outperformance this year should consider small-cap value ETFs, moving beyond the prominent Magnificent Seven and mega-cap growth stocks.
The recent correction may provide a 'wake-up call' for investors primarily focused on mega-cap stocks, prompting a shift toward smaller, underappreciated value plays.
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