Adam Taggart | Thoughtful Money® · Oct 31, 2026 · 1h 28m · 80m saved
With Lance Roberts, Chief Investment Strategist at RIA Advisors
Photo via riaadvisors.com
About $4 trillion of market value came off the Magnificent Seven in a week, and four of the seven stocks fell into bear-market territory. Lance Roberts, Chief Investment Strategist at RIA Advisors, told Adam Taggart on Thoughtful Money that the drop is mostly money moving from growth stocks to value stocks, not a broad market breakdown.
The headlines measured the damage by the biggest companies. Lance pointed to Eli Lilly, Walmart, Costco and Berkshire Hathaway, which kept rising through the week, and to an equal-weighted index that fell far less.
"Go back four weeks, October the 5th, we talked about that we had sold our growth, reduced our growth allocation and added to our value allocation." — Lance Roberts
Lance manages client portfolios at RIA Advisors and had already made that move. He is now watching for the moment to reverse it.
The full interview is covered here so you can skip it. 88 minutes of audio, 8 minutes of reading.
Here are the 10 arguments that matter.
Key Takeaways
RIA cut growth stocks and added value on October 5, before the tech selloff
RIA's rotation model is close to flipping back to growth, possibly within a week
Analysts raised their estimates going into earnings, which made solid results look like misses
Lance put margin debt at a record $1.2 trillion
Google trades at about 18 times forward earnings, which Lance says is cheap next to Costco and Walmart
Adam expects AI to remove many entry-level jobs, and Lance says internships will go with them
Bonds are in a portfolio because they are not volatile, so swapping them for Bitcoin or gold defeats the purpose
RIA holds 10% to 15% cash and plans to raise stocks from 60% to about 65% into year-end
1. Big Tech's $4T Week
Adam opened with the scale of the damage. More than 60% of the stocks in the S&P 500 were down at least 20% from their highs.
Adam counted $4 trillion of lost value in the Magnificent Seven
"Four trillion in market cap has been wiped out from the Magnificent Seven. Four of those seven stocks are in bear market territory right now." — Adam Taggart
Lance's answer was that the selling was concentrated. Google, Amazon, Meta and Intel fell hard after reporting earnings, while the value stocks RIA had bought a month earlier kept rising. That is the rotation RIA had positioned for on October 5.
