Several money experts have issued warnings about the state of today’s economy, challenging the optimistic narratives often put forth in the media. While the stock market continues its upward trajectory, financial influencer Jaspreet Singh points out that these gains are largely concentrated among a small number of companies, leading to a greater risk for the overall market.
Singh argues that the average American is facing economic challenges, with rising inflation and a slowing job market influenced by the growth of artificial intelligence. “The news keeps talking about how corporations are seeing record profits, which is helping the stock market break new record highs,” Singh stated in a recent YouTube video. “But we’re actually seeing a divergence here where a few select companies are carrying the market while the rest of the stock market is slowing down.”
Specifically, Singh highlights the “Magnificent Seven”—Meta, Alphabet, Amazon, Apple, Microsoft, Nvidia, and Tesla. According to his analysis, these companies experienced an impressive earnings growth of about 14.9% in the third quarter of 2025. In stark contrast, the remaining 493 firms within the S&P 500 reported a significantly lower earnings growth of only 6.7%. This disparity raises concerns about the health of the broader market, as the Magnificent Seven’s growth far exceeds the historical average of 9.2%.
Singh warns that while it’s not uncommon for certain companies to outperform others, the excessive reliance on a select few poses a risk. “These seven companies by themselves make up around 33% of the entire value of the S&P 500,” he noted. “If one of these companies falters, it could have a cascading effect on the entire stock market.”
J.P. Morgan has projected that these leading firms could see earnings per share (EPS) growth around 20% in 2026, outpacing the anticipated EPS growth of the S&P 500, which is expected to be between 13% and 15%. This reliance on a limited number of corporations has prompted discussions about whether the current market is inflating a bubble rather than deflating it.
Singh further elaborates on the potential for bubble inflation due to recent moves by the Federal Reserve, which has begun cutting interest rates. Lower rates generally encourage borrowing, which can lead to inflated asset prices. Singh warns that such monetary policies may exacerbate risk: “Lower interest rates don’t pop bubbles; they inflate bubbles.”
Additionally, the Federal Reserve’s cessation of quantitative tightening encourages banks to lend and investors to take on more risk. Singh points out that as money becomes easier to come by, investors may gravitate toward speculative assets, fueling higher valuations for a limited number of companies.
The crux of his warning rests on the notion that market pricing is heavily predicated on expectations of ongoing growth, especially with advancements in artificial intelligence. Investors are currently paying premiums assuming that profits will continue their upward trend, but if these expectations aren’t met, even solid earnings could lead to buyer retreat and significant market corrections.
To navigate these turbulent waters, Singh advises investors to adopt two main strategies. The first is a passive investment approach, where individuals regularly contribute a set amount into passive funds. This strategy fosters discipline and long-term growth, regardless of market volatility. “Set up a system where money gets automatically deposited into these funds,” he suggests.
The second strategy involves active investing. While this approach requires more effort and carries additional risks, it also offers the potential for higher returns. “If you want to build more wealth, you need better returns on your money, and you’re not going to get any higher returns unless you’re taking on at least a little bit more risk,” Singh explained.
As economic conditions fluctuate and reliance on a few major players deepens, Singh’s insights serve as a timely reminder for individuals and investors alike to carefully consider their financial strategies moving forward.
