The Kobeissi Letter
@KobeissiLetter
·
10h
BREAKING: The 15 largest S&P 500 stocks now account for a record 46.7% of the index’s market value.
By comparison, during the 2000 Dot-Com Bubble, the 15 largest stocks accounted for 27.2% of the S&P 500.
The remaining 485 stocks represent just 53.3% of the S&P 500’s market cap.
This comes as Nvidia,
$NVDA
, Apple,
$AAPL
, Alphabet,
$GOOGL
, and Microsoft,
$MSFT
, account for 7.5%, 7.1%, 5.9%, and 5.6%, respectively, or 26.1% combined.
This means just 4 stocks account for more than the next 11 combined.
Furthermore, the combined market cap of the 5 largest stocks now equals that of the bottom 434 stocks in the index, the largest gap on record.
Market concentration is at historic extremes.