The US stock market is heavily concentrated in just ten companies, mostly big tech stocks. This video breaks down why these giants have grown so dominant and what that means for your portfolio.
Is the US Market currently a little more concentrated in the top ten holdings than usual? Yes, it is. It is more concentrated, but always it has been concentrated in the top 10 holdings because it's capitalization weighted. And these are the biggest companies. So, you know, I think historically if you look back, it might only be, you know, 15 or 20% or whatever on average. I don't know what the average is, but it's less than 29% or whatever it is now. But but this just reflects the incredible run that, number one, U.S. stocks have had, number two, large stocks have had, number three, growth stocks have had, and number four, tech stocks have had. So these large U.S. growth tech stocks have grown dramatically in comparison to the rest of the US Stock market, and that has resulted in them being at the top of the list and then making up such a large percentage of the overall stock market.
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