FAD - Can Mega-Capitalization Stocks Continue Their Dominance?

2024-07-19 09:30:00 ET

Summary

• Over the last few years, a handful of “Mega-Capitalization” stocks have dominated market returns.
• Given the speed at which technology and the economy rapidly change, such suggests that leaders of the last decade may not be the leaders of the next.
• The rise of passive investing and corporate share buybacks could impact the current dominance of mega-cap companies in the market.

Over the last few years, a handful of “Mega-Capitalization” (mega-market capitalization) stocks have dominated market returns. The question is whether that dominance will continue and if the same companies remain the leaders. It is an interesting question. The number of publicly traded companies continues to decline, as shown in the following chart from Apollo. ...

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