Worried About Record Stock Market Concentration? Us, Too
The big are getting bigger, and the small are growing much more slowly.
That’s according to Bryan Taylor, the chief economist at the financial data firm Finaeon, who has over 200 years of financial data upon which to base this statement. The stock market has simply never been this concentrated. In fact, the 10 most valuable US companies had a market capitalization of nearly $24.4 trillion as of October 23, according to CompaniesMarketCap.com. The heavy concentration is in large-cap growth tech stocks.
To put this in perspective, these 10 companies represent just over 43% of the S&P 500. Nvidia alone represents nearly 8% of the S&P 500. That’s roughly the same value as the entire 2,000 small-cap companies in the Russell…
