Seven Stocks Are 41% of the S&P | John Davi on Building Portfolios Beyond the Mag 7 Bet

John Davi of Astoria Investment Management joins Jack Forehand and Justin Carbonneau to describe how he builds diversified portfolios when a handful of stocks dominate the index. The episode covers his decision to trim an equity overweight without calling a top, the 10-year Treasury yield measured against nominal economic growth, overlap between SPY and QQQ, and what goes into the diversifying sleeve when a 60/40 portfolio becomes 50% stocks, 30% bonds and 20% diversifiers. Davi also discusses preferring AI adopters to AI builders, watching credit default swaps on the companies funding the buildout, and screening for quality at a reasonable price.

1. Davi trimmed Astoria's equity overweight without trying to call a market top.
2. Seven stocks are 41% of the S&P 500, and he discusses whether their earnings can grow fast enough to justify AI spending.
3. He favors companies adopting AI over those building it, and watches credit default swaps on the firms funding the buildout for signs of stress.
4. Astoria screens for quality at a reasonable price using profitability, dividends and valuation.