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Welcome to The Profit Zone 👋
Where thousands of millionaires, CEO’s and high-performing entrepreneurs read the #1 financial newsletter on the web.
The diversification illusion hiding inside SPY 🎭
The 10 stocks quietly running your entire portfolio 📊
What concentration risk actually looks like in real dollars 💸
A 4-step framework to build diversification 🛠
The sectors most investors are dangerously underweight in 🔍
The S&P 500 closed above 7,200 for the first time ever, while the Nasdaq crossed 25,000 also marking a historic milestone.
Q1 blended earnings growth hit 27.8% year-over-year which is the strongest since Q4 2021, being driven by a massive Magnificent 7 earnings week.
Alphabet surged ~10% after Google Cloud grew 63%. Qualcomm jumped 16% on AI chip strength and Apple's services revenue hit a record $30.98 billion.
Meta fell 9% after spooking investors by raising capex guidance to $125–$145 billion.
The Fed held rates steady in what was likely Jerome Powell's final press conference as Chair.
The 10 Best AI Stocks to Own in 2026
AI is moving from experiment… to essential.
Every major industry is integrating it.
Every major company is investing in it.
By late 2025, AI was already an $800B market — growing at a pace that could push it well beyond $1 trillion in the years ahead.
Cloud infrastructure is scaling fast.
AI-enabled devices are multiplying.
Automation is becoming standard.
But here’s the real question…
When trillions flow into this transformation — which stocks stand to benefit most?
Our new report reveals 10 AI stocks positioned across the backbone of this shift — from the companies powering the infrastructure… to those embedding intelligence into everyday systems.
If you want exposure to one of the defining growth trends of this decade, start here.
The Index That Isn't Actually an Index Anymore
Here's a question most investors can't answer honestly:
If you own SPY, what do you actually own?
The textbook answer is:
"The S&P 500 (Standard & Poor's 500) which is a stock market index tracking the performance of ~500 leading U.S. publicly traded companies”.
That answer was accurate in 1993. But in 2026, it's a dangerous oversimplification.
The 10 largest companies in the S&P 500 now make up ~40% of the entire index by market cap.
That means when you put $10,000 into SPY, roughly $4,000 of it is allocated to just 10 stocks. The other $6,000 gets spread across the remaining 490.
That isn't diversification. It's concentration disguised as diversification using the word “index fund”.
Here are the top 10 funds in the S&P 500 right now. See a pattern?
The 10 Stocks Running Your Portfolio
You already know the names: Nvidia, Apple, Microsoft, Amazon, Alphabet (Class A/C), Broadcom, Meta, Tesla and Berkshire Hathaway.
Together, they're driving the overwhelming majority of the S&P 500's returns and its risk.
When Nvidia drops 10% on a bad earnings call, that "diversified" index fund you hold feels it.
When Meta disappoints on advertising revenue, your 500-company portfolio bleeds hard. When the AI trade reverses, so does your entire position.
This creates a problem most retail investors haven't thought through.
3 numbers that tell the story:
40%: Share of S&P 500 market cap held by just 10 companies (as of April 2026).
6x: How much faster AI-heavy stocks grew earnings vs. the rest of the S&P 500 from 2023–2025.
490: The number of companies in the S&P 500 collectively receiving less weight than those top 10.
What Concentration Risk Looks Like in Your Portfolio
Here's the honest version of what "owning the index" means today.
If you have $50,000 in SPY, approximately $20,000 of that is riding on 10 similar tech stocks.
If those 10 names correct 30%, which happened in 2021/22, you've lost $6,000 on those positions alone, before the rest of the index moves an inch.
The illusion isn't that the S&P 500 is a bad investment. It isn't.
The illusion is that it provides the diversification that most investors think they're getting.
A concentrated bet that has been performing well is still a concentrated bet.
The 4-Step Fix: Building Real Diversification
Knowing the problem is half the job. Here's the framework.
1) Run your actual concentration check
Pull up your portfolio today and calculate what percentage sits in tech and tech-adjacent names. Include your index funds. Look through them, not just at them. If more than 35–40% of your total exposure traces back to the Mag 7 or AI infrastructure plays, you're concentrated whether you feel like it or not.
2) Add equal-weight exposure
The Invesco S&P 500 Equal Weight ETF $RSP ( ▲ 0.79% ) gives each of the 500 companies a roughly equal 0.2% weighting. It's the same 500 stocks but without the top-heavy distortion. Historically, it has outperformed cap-weighted SPY during most periods except tech bull runs.
3) Diversify by factor, not just by name
Owning 10 different tech ETFs is not diversification. Real diversification means exposure to different factors: value, quality, dividend yield, small cap, and international. Each of these behave differently in different macro environments.
4) Rebalance with intention
The S&P 500's top-heavy concentration got worse because winners kept getting bigger. Set a rule, either quarterly or semi-annually, to trim overweight positions and rebalance back toward your target allocation. Not because you're bearish on tech, but because size alone shouldn't make up your conviction.
The Bottom Line
Owning $SPY ( ▲ 0.8% ) isn't wrong. It's one of the most efficient vehicles in investing history.
But knowing what you actually own is non-negotiable.
The investors who got hurt most in 2021/22 weren't the ones who made bad picks.
They were the ones who thought they were diversified (but weren't) when the most over crowded trade in the market reversed.
Build your portfolio with your eyes open.
Know what you own.
Know the concentration risk you're carrying.
And if the answer makes you uncomfortable, fix it before the market does it for you.
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The Profit Zone
