US market’s stock concentration – not all doom and gloom: McGeever

US market’s stock concentration – not all doom and gloom: McGeever

U.S. equity market concentration has reached unprecedented levels
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U.S. equity market concentration has reached unprecedented levels, sparking concerns about the risks of reliance on a handful of stocks. Despite fears, historical data shows higher returns during rising concentration. A study by Mauboussin and Callahan reveals that the U.S. remains one of the more diversified markets globally. While tech giants dominate, their strong fundamentals suggest this trend may not signal imminent disaster but rather a feature of modern markets.

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By Jamie McGeever

U.S. equity market concentration is, by some measures, now the strongest ever, raising justifiable concerns that having the entire market's fate in the hands of so few stocks will only end in tears.

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