From "The Big Seven" to "The Latecomers"..

Is Dalio's prophecy beginning to come true?
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Ray Dalio has always repeated a golden rule: "Nothing grows to the sky forever, and economic cycles are inevitable."
It seems that 2026 has begun to prove this theory in the harshest way possible.

Look at the attached chart; it tells the story of a shift in the balance of power on "Wall Street":
For the first time in years, we see the "Big Seven" (Mag7) in red, while the rest of the market (S&P 493) leads the rise.
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What is happening?
We are witnessing a phenomenon called "Market Breadth Expansion" (Market Breadth).

In recent years, the market was standing on a "single leg" (Tech Companies).

Today, smart money has started to realize that valuations there have reached saturation, so it has begun to "migrate" in search of value in forgotten places:
Industry,
Healthcare,
And companies with real value that were hiding behind the giants.
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This shift from Mag7 to what they now sarcastically call Lag7 (The Latecomers) is not bad news; rather, it is a sign of "health."

A healthy market is one where 400 stocks are rising, not just 7.

The lesson for investors:
If your portfolio relies entirely on "the past" (Big Tech only),
this year could be painful.

Smart money today does not follow the herd; it leads it to new green pastures in the S&P 493.

Have you reviewed your portfolio allocation for 2026,
or are you still betting on the 2024 horse?

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