I've got $130k to deploy. The companies I'd like to hold are all pretty AI stack related (with some exceptions), and they're all basically at all time highs. Is a basket of basically Mag7 stocks - with some data center and defense additions - a solid portfolio for next 5-10 years or is concentration risk too much? (also got another 100-120k coming to deploy in a few months)
Here are my 3 scenarios:
1 - MAG7 stocks with highest weight in AMZN, with some extra picks - TSM, SHLD, VRT, PWR, RYCEY, ABBNY (yea all at highs)
2 - Keep large base in VOO(60-70%?) - add high confiction singles - AMZM, NVDA, TSM, VRT, SHLD
3 - just 100% VOO and dont pick winners
My brain is telling me 1 is too high on concentration risk but on the other hand the market is basically just the mag 7 right now anyway.
any thoughts appreciated