Ed Yardeni just raised a major red flag…

The President of Yardeni Research is now telling his investors to underweight the Magnificent Seven.

Yes, you read that correctly….

Under-Weight.

As you know, the “Magnificent Seven” includes Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), Nvidia (NVDA), Tesla (TSLA), Meta (META) and Alphabet (GOOGL).

This grouping has been responsible for a majority of the market’s gains over the last three years.

Just this year, the Mag7 group has gained +24%, which has outpaced the Invesco S&P 500 Equal Weight ETF’s +9.6% gain.

As it stands, information/technology now accounts for 45% of the entire S&P 500 – which means that most of the market’s heavy upside lifting has been carried by these seven companies.

But now, Yardeni says it’s time to get out – and focus on what he calls the “Impressive-493”, referring to the remaining 493 S&P 500 stocks.

It’s easy to see why…

All of the Mag-7 members now trade at a premium to the S&P 500.

This could lead to big opportunities in the over-looked (and now undervalued) remainder of the S&P.

Further adding fuel to the fire….

This week will kick off, what I’m calling, an “Economic Report Backlog Catch-Up.”

You see, after a few months of skipping the typical flow of economic reports, we’ll see a “catch-up” effect this week, as the Bureau of Labor Statistics will release JOLTS for both September and October this Tuesday – followed by the Fed making their latest monetary policy decision on Wednesday.

The FOMC is widely expected to cut another quarter point.

There’s no telling what we’ll see for JOLTS (or even if we can trust whatever numbers are reported).

How do you trade it all?

YOUR ACTION PLAN

Tomorrow at 2 p.m. ET, Karim and I will go LIVE in Catalyst Cash-Outs Live to reveal our latest pick. Spoiler alert: It will NOT be a Mag7 play. But rather, it’ll be one of the undervalued (and underappreciated) stocks that could soon see an upside move. You’re invited to join our live session in Cashouts tomorrow to get this exciting new pick!

Not a Cash-Outs Member? Join HERE to Get Access to Tomorrow’s Livestream