Restless cowboys. Ambitious settlers. Hostile tribes.
Emerging ranches. Emerging farmsteads. Emerging railroads.
The promise of a new life on the frontier.
Source: Image generated by OpenAI’s DALL-E
Now, if you’ve ever watched a Western film, then you already know how iconic the imagery is:
- You get an untamed landscape filled with wide horizons and high stakes.
- You get rugged characters who pursue ideals of self-reliance and personal justice.
- You get storylines about blood and treasure. Action and consequence. Grit and sentimentality.
Indeed, the mood of a Western is so recognisable that it has become a stereotype, hasn’t it? Perhaps easy enough to dismiss as lightweight entertainment?
- Well, I beg to differ. I actually think that the Western genre is deeper and more profound than most people are willing to give it credit for.
- You see, unlike other art forms that were originally imported into the United States from other countries, the Western genre is quite different. It’s completely homegrown. Totally indigenous. Inspired by America’s real-life growing pains as a nation expanding on the frontier.
- Because of this, the Western has real emotional weight. True mythic power. It’s not just about how Americans perceive the world — but how Americans perceive themselves. Indeed, I believe it’s quite possible that their appetite for risk and reward was born right there in the legendary Old West.
Source: Wikimedia Commons
Now, when I think about my favourite Western films, there’s one title that ranks highly on my personal list — The Magnificent Seven:
- Released in 1960, this is a classic tale of redemption and sacrifice. The movie features a team of mercenary gunslingers, played by an extraordinary cast — Yul Brynner, Steven McQueen, Charles Bronson, and others.
- Together, they help a village of innocent people to fend off an attack by bandits. It’s an exciting, pulse-pounding story.
However, therein lies the irony. While the Western genre is a uniquely American art form, The Magnificent Seven itself isn’t original material:
- Here’s a surprising fact. The Magnificent Seven is actually a loose remake of Seven Samurai, a 1954 Japanese film by legendary filmmaker Akira Kurosawa.
- Yes, that’s right. This American classic actually has Japanese roots. But here’s a strange twist. The Japanese film itself also has American roots.
- Akira Kurosawa has acknowledged that he was directly inspired by the Western genre. In a creative masterstroke, he actually took the themes of American frontier justice and transplanted them to the landscape of feudal Japan.
Kurosawa explains his motivation here:
‘Good Westerns are liked by everyone. Since humans are weak, they want to see good people and great heroes. Westerns have been done over and over again, and in the process, a kind of grammar has evolved. I have learned from this grammar of the Western.’
It’s fascinating, isn’t it? You can see how the cultural influence of the Western has come full circle:
- Wandering gunfighters in America. Wandering samurai in Japan. You might argue that these characters are pretty much the same thing, aren’t they? These are tough, self-sufficient men, motivated by a certain code of honour. Absolutely thrilling to watch.
- I believe that what these characters represent is a classic archetype. A bygone warrior spirit from a bygone age.
- Indeed, for me, to watch a Western is to catch a glimpse of the past. To reflect upon it. Then to feel a sense of sadness for a way of life that no longer exists.
Source: Callie Cox / LinkedIn
Right now, in the world of investing, the symbolism of the Western looms large. You already know this. The S&P 500 index has its very own cast of extraordinary gunslingers. Its very own Magnificent Seven:
- Alphabet [NASDAQ:GOOGL]
- Amazon [NASDAQ:AMZN]
- Apple [NASDAQ:AAPL]
- Meta Platforms [NASDAQ:META]
- Microsoft [NASDAQ:MSFT]
- Nvidia [NASDAQ:NVDA]
- Tesla [NASDAQ:TSLA]
When you put them together, these seven companies make up more than 30% of the market capitalisation of the S&P 500. That’s a whopping $17 trillion in value:
- Indeed, the capital inflows from global investors have been compounding over the past decade. Success breeds success. Everyone loves the Magnificent Seven. The perception here is that these companies are Steadfast. Reliable. Heroic.
- However, after enjoying two back-to-back years of strong growth in 2023 and 2024, something quite surprising has happened in 2025.
- The Magnificent Seven have suddenly stumbled this year. Their momentum has stalled, dragging down the S&P 500. The reversal of fortune feels like a sucker punch that’s come out of nowhere.
Meanwhile, across the Atlantic Ocean, a dramatic shift is happening. A European stock index has actually been outperforming the S&P 500 this year. It is pulling ahead, accelerating, surprising the hell out of many investors:
- So, are we seeing a changing of the guard? Are European stocks about to eclipse their American counterparts? Is the Magnificent Seven at risk of riding off into the sunset for good?
- Well, let’s separate truth from rumour. I want to take an urgent look at what might happen next in the global investment cycle…
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