S&P 500: Concentration on 10 Companies
"The top 10 largest companies now make up roughly 40% of the entire S&P 500 index. Cuz I know you guys are not here buying weighted S&P 500 index funds. No, of course not. You're buying the regular one, the one that's made up of 40% of 10 stocks. We have never seen a market this top-heavy in modern financial history."
ℹ️ In shortThe top 10 largest companies now make up roughly 40% of the entire S&P 500 index, making the market extremely top-heavy and risky.
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For informational purposes only. Not investment, financial, legal or tax advice. Full disclaimer
… Oh, so you think your portfolio's safe and diversified just because you own the S&P 500? I got bad news for you, sunshine. You're falling into a massive trap. [music] Stock market concentration just blasted into extreme historic territory. The top 10 largest companies now make up roughly 40% of the entire S&P 500 [music] index. Cuz I know you guys are not here buying weighted S&P 500 index funds. No, of course not. You're buying the regular one, the one that's made up of 40% of 10 stocks. We have never seen a market this top-heavy in modern financial history. When you buy a standard index fund today, you aren't betting on >> [music] >> the broader American economy, you're betting on 10 companies. It's a tiny handful of massive tech giants to keep outperforming. And so far, that's been a good bet. But if just two or three of these massive names suffer a battering as a court, they can drag the en …
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