2024-06-12 03:50:00 ET
Summary
- One of the persistent themes in recent years has been the high and increasing concentration in US stocks.
- The outperformance of US stocks has been driven almost entirely by large cap US tech names and the “Magnificent 7”.
- This isn’t the tech bubble all over again because the firms causing the tech boom are not just speculative wishful thinking. They are the most profitable entities that have ever existed.
One of the persistent themes in recent years has been the high and increasing concentration in US stocks. In fact, the outperformance of US stocks has been driven almost entirely by large cap US tech names and the “Magnificent 7”. How worrisome is this, and does it matter to your portfolio? Let’s explore this in a little more detail....
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For further details see:
How Worrisome Is High Stock Market Concentration?