A Systematic Walk
Down Wall Street

Behavioral Finance

Home » Insights » Behavioral Finance Blogs

What 200+ Years of Data Teaches About Market Concentration

What 200+ Years of Data Teaches About Market Concentration

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?

What 200+ Years of Data Teaches About Market Concentration

By: Jon Robinson
Storage area for historic files

What 200+ Years of Data Teaches About Market Concentration

Scarecrow in a field

Famous Strawmen: The Scarecrow & The Best 10 Days Rule

Managing risk while providing a more comfortable ride can give financial advisors an important moat in this increasingly competitive industry.
Still image from “The Shawshank Redemption” movie

Hope Is a Strategy (Just Not a Good One)

Hope (as a verb) is a poor strategy for investing. Hope (as a noun) is the result of thoughtful design and consistent execution (i.e., having hope not AS a strategy but BECAUSE of your strategy).
Two glasses filled with beer

Trend & Value Walk Into a Bar…

Trend following and value investing share attributes: systematic decision making, risk management, and discipline. While they share common goals, it’s the execution that differs.