When Superstars Burn Out, Featuring the Magnificent 7.

​When Superstars Burn Out, Featuring the Magnificent 7.
News of the ceasefire on Tuesday evening, April 7, 2026, sparked a rally on Wall Street the following day. The S&P 500 jumped 166 points (2.5%) on Wednesday, April 8, 2026. The S&P500 is now only -3.13% off its all-time high of 7,002.28, set on Jan. 28, 2026.

So, why are Tesla, Microsoft, Palantir (and other technology stocks) off their all-time highs by -31.90%, -32.60% and -38.3%, respectively?

Here are the topics I’ll cover in this blog. I’ll also answer a few key questions that are on everyone’s mind.

The Superstars of 2025
The Year-to-Date Burnouts
2026 Supernovas
Price Matters
A Quick Q&A
 
And here is more information on each point.
 
The Superstars of 2025
 
By now, the term Magnificent 7 has been burned into Wall Street lore. However, did you know that First Majestic Silver (our pick in June of 2025) was the real superstar of last year? The company was up 368% by Jan. 26, 2026. While it was important to lean into AI and the Magnificent 7 in 2025, it was an even better idea to stock up on silver. Copper was strong, but Peru (the world’s 2nd largest exporter of copper) was the better investment. Check out the Superstars Performance Chart below.

​The Year-to-Date Burnouts
AI was already starting to disrupt select technology stocks, including Microsoft, Palantir, Salesforce, Workday and many cybersecurity companies – even before the war in Iran. A lot of technology stocks hit an all-time high between August and October of 2025. While the concerns that some of these industries and companies will be negatively impacted by AI are real – including the challenge that AI-dominant firms have in earning profits, one of the reasons for the plunge in share price of select technology stocks was that they were outlandishly expensive – something we’ve been warning about all stocks, but pronounced quite significantly in the Magnificent 7. I warned about Tesla on Jan. 7, 2026, when it was trading close to $500/share. (There were many valuation warnings in 2025.) “Should a company with $5 billion in net profits be worth $1.43 trillion?” I wrote.

Crypto. Bitcoin is down -17.62% year to date. While the White House is pro-crypto, there are more than a few trends that could keep us in a Crypto Winter until 2027. Bitcoin often performs terribly during periods of stock weakness. In 2022, when the S&P 500 sank by -19.44%, Bitcoin bottomed out at -67% losses.

Sources: Morningstar Direct, S&P Dow Jones Indices, MSN.com, Gold.org.

While Bitcoin was the top performer in 2023 and 2024, it’s difficult to lose 2/3rds of your wealth for any period of time. It’s not just a matter of sitting on your hands to endure the downturn. You might actually need that money for something. Your FICO score plunges, particularly if you have any debt.

There is also a very strong correlation between halving events and Crypto Winters. If Bitcoin follows the strong halving trend, Bitcoin could fall further in 2026 and 2027. The recovery might not happen until late 2027 or early 2028. Learn more in my Crypto Winter blog from Nov. 30, 2025. The $126,280/coin high for Bitcoin was on Oct. 6, 2025, right on track with the halving trends.

As you can see in the CAPE chart below, equity prices are still quite expensive.

Source: Prof. Robert Shiller, Nobel Prize winning economist.

The historical trends when prices get so high are not good. Between March 2000 and October of 2002, the NASDAQ Composite Index dropped -78%. A million dollars sank to just $220,000, which is quite a challenge for any person to endure financially and emotionally. It took 16 years to return above 5,000. You know what happened in the Great Depression – another period preceded by outlandish stock prices, leverage and debt.

If you’ve attended a retreat or followed my blogs, you know that I stress rebalancing 1-3 times a year. That is the way to capture gains and smooth out the volatility. Dollar cost averaging into funds that are trading at an all-time high is another important tool to keep us on the right side of the trade. Making sure we have an age-appropriate, diversified plan is the time-proven foundation of any wealth plan.

2026 Supernovas
If you’d like updated stock report cards on the industries listed below, email [email protected]. If you’re attending the April 24-26, 2026 ONLINE Financial Freedom Retreat, we’ll be looking at these industries in greater depth on Day 2 of the retreat. Email [email protected] or call 310-430-2397 to register now.

Oil. So far in 2026, oil stocks are the superstars. However, there are two obstacles that impede continued strength. If the war in Iran is over quickly, prices could return to the $60-$65/barrel range they were mired in prior to the war. The demand for oil products has weakened as global consumers, especially China and Europe, opt for electric vehicles. Fed-up, gas guzzler auto owners might expedite the EV transition.
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If the war in Iran continues, that is also negative for oil. Why? High oil prices are highly correlated with recessions, as you can see in the chart below. (The gray lines are recessions.) Although we didn't (technically) have a recession in 2022, when oil prices were as high as they are today, we did have two quarters of contraction and a Wall Street rout, particularly in technology and crypto.

When oil and gas prices rise so dramatically, the demand for oil products plunges. The worst example of this was during the early days of the pandemic, when oil prices dropped to -$37.63/barrel. Yes, you read that right. Future traders were having to pay buyers to take possession of the oil that they wouldn’t be able to store.

When all the family budget is going to the gas pump and the utility bill, no one can afford to take a vacation. Without consumer support, many companies will slash jobs. A rising number of people will be out of work. With almost 70% of the U.S. economy relying upon consumer spending, the cascade of problems becomes chaotic and concerning – two words that investors don’t like.

It’s worth looking at your exposure to oil, gas and defense stocks to consider capturing gains at an all-time high. 

Defense. Many defense companies are also trading near an all-time high. Prices hit their zenith at the end of February and have pulled back a little since then. Many of the biggest players have quite low profit margins, substantial debt and very high share prices. If the ceasefire holds and the war in Iran ends, prices could drop quickly – not because there won’t be another war or conflict, but because the prices are high. Boeing, Huntington Ingalls, Textron, RTX Corporation, Northrop Grumman and OshKosh are all rated in the BBB range (the lowest rung of investment grade).

Peru and Clean Energy. These two plays are holding up strong in 2026, with gains of 18.45% and 15.16%, respectively. When people can’t afford to put gasoline in their car or heat or cool their home, they become more interested in electric vehicles and solar panels. Copper is essential to the clean energy revolution, and Peru is the 2nd largest exporter of copper. However, even here, if war continues and a recession kicks in, both sectors will be negatively impacted. Learn more in my Peru blog. (Click to access.)

Our pie chart system, which encourages an age-appropriate, diversified strategy that is rebalanced 1-3 times a year to remain so keeps us protected and performing. If you don’t have these investments and want to, consider dollar cost averaging in. If you have them and are in the money, consider selling high and trimming back your exposure to the appropriate slice amount. You can construct your sample pie chart using our free web app. Email [email protected] for the link. We cover this strategy in detail on Day 1 of the Financial Freedom Retreat. Email [email protected] or call 310-430-2397 to register now.

Gold and Silver. Gold and silver are up 9.90% and 7.28% on the year as of April 9, 2026, respectively. Safe havens can get dragged down in the first phase of a stock rout. However, there will come a point that precious metals decouple, if stocks continue sinking. It’s a smart idea to capture gains if you’ve already doubled your money, and to dollar cost average into a slice or two of a diversified, age-appropriate plan, if you are just now investing.
 
Watching silver pull back 39% from the high set on January 29, 2026, is a reminder of the power of capturing gains and having a rebalancing strategy. Rebalancing at the end of December, after the Santa Rally, is almost always a great idea.
 
Price Matters
Stocks, in general, are still trading at very elevated prices. The effects of unaffordable oil prices (for average consumers) will linger, which is negative for GDP growth and Wall Street. According to Mark Zandi, the chief economist of Moody Analytics, “Recession risks thus remain uncomfortably high, with close to even odds of a downturn in the coming year.” Google AI notes that there is a 70% chance of a correction in 2026 – a mid-term year. The past two midterm years have been down years. In 2022, the technology-rich NASDAQ Composite Index dropped by -33%. In 2018, the S&P 500 was down -6.24%.
 
If you haven’t rebalanced your wealth plan, or if you don’t have a crystal clear understanding of what you are invested in, whether it is your employer-sponsored retirement or a managed plan, now is the time to know exactly what you own and why, and what a healthy wealth plan that protects your wealth, while performing above the market on the at-risk side, looks like.

​Learning the life math that we all should have received in high school (at the Financial Freedom Retreat) is a great way to start the process of being the Boss of your Money. Email [email protected] or call 310-430-2397 to register now.

A Quick Q&A
1. Will oil prices fall quickly if the war ends? This is possible, since demand is weakening worldwide. However, it is also likely that it will take time to get the global supply chain functioning at full force again, which could keep prices high in the short- and mid-term.
 
2. Why have the Magnificent 7, Bitcoin and even silver and gold pulled back so much from their all-time highs, especially when compared to the S&P500? Each story is slightly different, as you can see in the details above. However, much of the story has to do with irrational exuberance and very high prices. When things soar too high, they can also drop like a rock. I’ll keep you updated on each of these industries throughout the year. However, in general, we still have hot slices of silver, AI (which a lot of the Magnificent 7 companies are leading in), cybersecurity and clean energy.
 
Even with the recent pullbacks, over the 12 months:
 
* Silver is still up 150%
* Peru 122%
* Google (Alphabet) 115%
* Nvidia 89%
* Clean Energy 75%
* Gold 59%
* Tesla 55%
* Apple 50%
* S&P 500 36%
 
Rebalance. The pie chart system prompts us to buy low and sell high, and takes emotions (which often stoke us to do the opposite of what we should) out of the equation.
 
3. Is it a good idea to just buy and hold an S&P500 index fund? I just wrote a blog on this! Click to access it. 

4. If AI is so hot, why are all the Magnificent 7 stocks down -10-33% off their highs, while the S&P500 is only down -3.13%? The 2023 – 2025 period was all about the Magnificent 7. They were the drivers on Wall Street. Most of these companies have impressive year-over-year revenue growth, robust profit margins and a treasure chest of cash. The price earnings ratios were just ridiculous. When prices get so far out of whack from reality, they might crash – even in healthy, strong companies. (Wall Street whales know how to take their profits.)
 
5. How can a Main Street investor smooth out the Wall Street rollercoaster? Adopt an age-appropriate, diversified strategy and rebalance 1-3 times a year. Understand what’s safe in a Debt World. Be the boss of your money. This can be on autopilot with our easy pie-chart system. Read about it in my bestselling books. Learn and implement it at our online Financial Freedom Retreat. Or get an unbiased 2nd opinion and an effective, easy-to-follow blueprint in my private coaching. Email [email protected] or call 310-430-2397 to learn more now.
 
Bottom Line
Rebalancing to capture gains is a much better idea than thinking stocks only just go up. Chasing headlines, whether it was AI last year or oil and defense stocks today, can be a losing bet. If you placed that bet early and are in the money, now might be a great time to cash in your winnings. If you’re tempted to buy high, remember that we’re always late when we chase headlines. When everyone wants to buy, it’s better to be in the position of selling and capturing gains. When no one wants to buy (or can’t because they lost too much money), opportunities abound. That’s why buy low, sell high is so easy to say and so hard to do.
 


Are you aware that the hot funds we've been featuring in our sample pie charts and retreats performed at the top of Wall Street in 2025? Silver tripled. Peru (copper) was on fire with over 100% gains. Even clean energy scored 55%... 

Why not treat yourself to the gift of financial freedom to create a New Year, New Me in 2026?
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Register now to join us at our online Financial Freedom Retreat April 24-26, 2026 where you'll learn how to protect your wealth, save thousands annually in your budget, invest in hot industries like AI, gold, crypto and more, and how to be in the best seat during our volatile Debt World. Register with friends and family to receive the best price. (Ask for access to a recording of our Real Estate, Bond or Rebalancing masterclass as our gift to you.) Email [email protected] to learn more and register now.

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If you’d like an unbiased 2nd opinion on your current wealth plan, email [email protected] for pricing and information.

Click through to the flyer to learn more. Call 310-430-2397 or email [email protected] for pricing, additional information and to register. Register with friends and family to receive the best price. Teens and college students can attend for just $99.

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Natalie Wynne Pace is an Advocate for Sustainability Financial Literacy & Women's Empowerment. Natalie is the bestselling author of The ABCs of Money (6th edition) and The Power of 8 Billion: It's Up to Us, and is the co-creator of the Earth Gratitude Project. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). Her book The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 6th edition of The ABCs of Money and the 2nd edition of The ABCs of Money for College are the most recent releases of these books. Follow her on Instagram. 
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Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden.​​

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Important Disclaimers
Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly-traded companies, funds or projects mentioned by Natalie Pace are not intended to be buy or sell recommendations.

ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect an age-appropriate, diversified wealth plan, which has been designed strategically, with the assistance of financial professionals who are familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge, patience and diversified strategy.  
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Information has been obtained from sources believed to be reliable. However, NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument.