Tony Robbins shares one reminder for those caught up in the ‘Magnificent 7’ bubble

To those caught in the still-inflating “Magnificent Seven” tech stock bubble, it’s a worthy endeavor to remember there are 493 other potential equities to invest in within the S&P 500 (^GSPC).

Industrials, healthcare, and more are there for the picking!

And outside of the S&P 500, there could be great investing opportunities in private equity, Treasurys, and hey, maybe even classic cars, if that’s your thing.

Put it all together, and this is what’s known as diversification — a tried-and-true wealth-building approach tested by millionaires and billionaires alike, life and business strategist Tony Robbins touted.

“I would just say maintain diversification. We all heard it a million times,” Robbins told Yahoo Finance at its New York City headquarters (see video above).

The six-foot-six author, who recently released “The Holy Grail of Investing,” says it’s a reminder served up by longtime friend and vaunted investor, hedge fund billionaire Ray Dalio. By diversifying, an investor can better reduce correlations between investments — and bring down the potential risk.

Known for his ultra-high-energy seminars, Robbins, who has a reported net worth of more than $600 million, warned against the AI hype bubble.

“I am concerned about it as well,” Robbins said about investors’ infatuation with Magnificent Seven names such as Nvidia (NVDA) and Microsoft (MSFT).

The diversification reminder couldn’t come at a better time as the Magnificent Seven trade has become hyper-correlated and is mostly moving in a singular direction — up and to the right.

The Magnificent Seven now makes up some 30% of the S&P 500’s market cap, in part powered by a hearty reaction to AI chipmaker Nvidia’s earnings report a week ago. Said market reaction has Wall Street analysts tripping over themselves to ratchet up profit forecasts, essentially feeding more upward momentum in the group’s stock prices.

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