Markets have now given up gains for the year.

The Nasdaq especially has taken it on the chin. Several of the Magnificent 7 stocks, (tech companies that largely carried stock market performance), have entered corrections or bear markets of their own.

*“Yesterday's Price Is Not Today's Price” - Rap Artist Fat Joe*

Drawdowns can happen quickly in growth stocks.

Investors constantly grapple with what today’s right price is for potential earnings down the road. Ask a Tesla or Palantir investor what a dollar of earnings should be worth today, and you can’t get a straight answer. Their entire 200x earnings thesis is based on moonshot projects. Stories do sell! But at what price?

Nobody is crying for these shareholders though, as anyone who’s held these Mag 7 stocks for over a year is still crushing the index and playing with house money.

Pundits argued that high concentration by the magnificent 7 stocks was dangerous for all stock market investors.

Thankfully, that’s not been the case. Dividend stocks, international stocks, and bonds have appreciated YTD despite the financial rhetoric:

Our message to growth investors: When you’re playing with house money, it’s ok to take some chips off the table.

Hot streaks don’t last forever. You don’t have to sell all your ambitious growth stocks, but there’s something comfortable about at least getting your original investment back. Capital gains are far better than the alternative (taxes be damned).