Behavioral Finance

With markets at or near all-time highs for most of 2024, we are consistently asked questions about valuation, market divergences, and other factors that may portend the end of the bull market. One of the most pervasive questions lately has been about market concentration. As a fewer number of stocks continue to dominate markets and indexes, we think it is important to answer these questions with data.

The market this year has been dominated by the “Magnificent Seven” stocks: Apple, Microsoft, Alphabet, Amazon, NVIDIA, Meta, and Tesla. These tech giants have captured an outsized share of market returns.

But is this unprecedented?