Investing in an index often hides just how uneven returns can be. Take the first half of 2025: the S&P 500 gained 5.5%. Sounds solid, right? But look under the hood and you’ll see a different story: 214 of the companies in the index were actually down for the year. 📊 What this means: ⦁ Index performance is often driven by a handful of large companies. ⦁ Owning “the market” doesn’t mean every stock is rising—it means the winners are outweighing the losers. ⦁ For investors, this concentration can increase both risk and opportunity depending on your strategy. The takeaway: Don’t confuse index returns with broad market health. Knowing what’s driving the numbers matters just as much as the numbers themselves.
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📊 The S&P 500 is now more concentrated than ever, with the top 10 stocks making up about 40% of the entire index. This level of concentration can be risky for investors, especially when 8 of those top 10 companies are tech firms that tend to move together, Morningstar Wealth’s Dominic Pappalardo noted in a recent Business Insider article. To learn more about the concentrated stock market and how investors should position their portfolios, check out the full article here: http://spr.ly/6044ABCjM
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Dubai-based Private Wealth Manager | +17,000 followers | CFA Candidate
Small cap stocks have been making a comeback in recent weeks, demonstrating potential opportunities down the market. Even though the S&P 500 has outperformed the Russell 2000 this year, there are more than 700 small cap companies that have individually beaten the large cap index. In a market with such heavy tails, we believe that a data-driven, idiosyncratic approach is crucial for identifying quality companies and managing performance variability. For the active investor, we believe there are an abundance of opportunities – including in today’s secular themes like artificial intelligence and technological innovation. Source: Goldman Sachs
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Davide Frattini works as Head of Sales, Global Channel Delivery Partners & EMEA Redistribution
📊 The S&P 500 is now more concentrated than ever, with the top 10 stocks making up about 40% of the entire index. This level of concentration can be risky for investors, especially when 8 of those top 10 companies are tech firms that tend to move together, Morningstar Wealth’s Dominic Pappalardo noted in a recent Business Insider article. To learn more about the concentrated stock market and how investors should position their portfolios, check out the full article here: http://spr.ly/6047A33Fl
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📊 The S&P 500 is now more concentrated than ever, with the top 10 stocks making up about 40% of the entire index. This level of concentration can be risky for investors, especially when 8 of those top 10 companies are tech firms that tend to move together, Morningstar Wealth’s Dominic Pappalardo noted in a recent Business Insider article. To learn more about the concentrated stock market and how investors should position their portfolios, check out the full article here: http://spr.ly/6046AGlj4
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📊 The S&P 500 is now more concentrated than ever, with the top 10 stocks making up about 40% of the entire index. This level of concentration can be risky for investors, especially when 8 of those top 10 companies are tech firms that tend to move together, Morningstar Wealth’s Dominic Pappalardo noted in a recent Business Insider article. To learn more about the concentrated stock market and how investors should position their portfolios, check out the full article here: http://spr.ly/6043A8hy7
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Market concentration is not a crash warning, but rather a sign that history often turns such periods into times of stronger and more durable gains for investors. Here’s what stands out: 👉 Top 10 S&P firms comprise 40% of the index, but that’s roughly in line with their 32.5% earnings share. 👉 Q2 EPS growth was 25% for top 10 vs. 8% for the rest. 👉 Weak breadth (29% beating SPX) has historically preceded ~15% gains. 🔗 Read more in the comments below.
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Private Client Advisor & Vice President of Investments at J.P. Morgan Wealth Management
The S&P 500 is hitting record highs despite trade uncertainties and expected growth slowdown. What’s driving this? Equity Strategist Abigail Yoder discusses the impact of resilient earnings and AI momentum in today’s Top Market Takeaways: https://bit.ly/42kAviP
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The S&P 500 is hitting record highs despite trade uncertainties and expected growth slowdown. What’s driving this? Equity Strategist Abigail Yoder discusses the impact of resilient earnings and AI momentum in today’s Top Market Takeaways: https://bit.ly/4mN1ITB
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VP Director, Regional Manager at Alliance Bernstein Investment Management
When equity markets rise to record highs, it’s natural for investors to feel a twinge of anxiety about putting more money into stocks. The fear of an impending correction often looms large. However, our research suggests that investing in US and global equity markets at these high points can yield surprisingly impressive returns. See more in our latest piece: https://lnkd.in/g5p-TDC7
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When equity markets rise to record highs, it’s natural for investors to feel a twinge of anxiety about putting more money into stocks. The fear of an impending correction often looms large. However, our research suggests that investing in US and global equity markets at these high points can yield surprisingly impressive returns. See more in our latest piece: https://lnkd.in/eSwXMUQh
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