Welcome to today’s presentation on one of the most important — yet often overlooked — risks in the current market. For the past year and a half, the S&P 500 has continued to reach new highs. However, beneath the surface, something concerning has been developing: extreme market concentration. A handful of stocks — mostly in Technology and Semiconductors — have been responsible for the vast majority of market gains. Using the Herfindahl-Hirschman Index Inverse, the S&P 500 is currently behaving like a portfolio of only 40 to 60 stocks, rather than 500.
Video Length: 00:11:29
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