While the artificial intelligence (AI) boom has been great for stock market investors over the past few years, there are a few signs that the rally might be getting exhausted.
The “Magnificent Seven” stocks, which had been pushing the major averages consistently higher, are all down over the past three years. All of them except Apple (AAPL +4.88%) were in correction territory as the first half of 2026 ended, though Alphabet (GOOGL 0.23%) has since ticked up as well.
AAPL data by YCharts
Given the underperformance of these stocks and of growth stocks in general, it’s time to acknowledge that no boom lasts forever. Investors may be looking for options that are more defensive and inexpensive than their choices over the past few years.
One of the best ways to position your portfolio for this is to focus on quality stocks. These are companies with healthy balance sheets that generate…
