Wall Street veteran strategist Yardeni recommends underweighting the Magnificent Seven U.S. tech stocks.

According to Jinse Finance, long-time Wall Street bull and investment advisory firm Yardeni Research suggests that compared to other S&P 500 constituents, investors should now be effectively underweighting the “Magnificent Seven” tech giants, predicting that their future earnings growth trends will change. Ed Yardeni, a veteran Wall Street research expert, pointed out, “We are seeing more competitors entering the lucrative areas dominated by the ‘Magnificent Seven’,” and expects that technology will boost the productivity and profit margins of other S&P 500 companies. He also added that, in fact, “every company is transforming into a technology company.” In a research report released on Sunday, the strategist noted that since 2010, the recommendation to overweight the information technology and communication services sectors in S&P 500 portfolios is no longer reasonable. The firm now suggests adjusting these two sectors to market-equivalent weights, while overweighting the financial and industrial sectors, as well as the healthcare sector.