I Analysed The Stock Market, The Results Will Surprise You

[whimsical music] In front of me, I've got this scratch map where you scratch off countries that you visited.

I've also got these £1 coins on the map as well.

Don't worry, I'll explain why I'm wearing a hat for you in a second.

So let's just pretend that the £100 on this scratch map represents me putting £100 into the global stock market.

I do that as an investor because I want broad diversification across the world.

Whenever I do that, about £2 goes into France.

We have about three quid goes into Canada, like that.

£3.30 goes into the UK.

I don't have the 30p, so I'm just gonna stick three quid there.

I'm sorry to shortchange you the UK, but it's still more than France anyway, isn't it, and that's all that matters.

Japan's kicking ass.

It's about £5.70 goes into Japan, so we will call that, we'll call that six pound.

And then America right here, well, they get this.

About £63 goes into America of every £100 that I invest.

The 4,700 or so companies that make up the American stock market account for about 60% of the global stock market's value as measured by the FTSE Global All Cap Vanguard Fund that I've used as a proxy for this.

Different funds put up different measurements.

But if we dive into this a little bit more, around £4.61 of it goes to one company, NVIDIA.

So that means that a chip designer founded in a Denny's diner in 1993 is now twice the size of France's whole stock market.

Apple gets 3.83. Let's call that four.

Microsoft gets 3.72. That's just a whole Canada right there.

Alphabet is £2.50. Amazon, £2.

Meta, £1.50. And then Tesla is £1.21, call it a quid.

These seven businesses, The Magnificent Seven they're often called, eight if we include a company called Broadcom, get roughly the same amount of cash into them out of the £100 every single time I invest as Japan, China, the UK, Canada, Taiwan, France, Germany, and India combined.

That is what we mean when we say a market has become concentrated.

Today I wanna find out, is that a bad thing? And what happens if it stops?

[whimsical music] In front of me, I've got this scratch map where you scratch off countries that you visited.

I've also got these £1 coins on the map as well.

Don't worry, I'll explain why I'm wearing a hat for you in a second.

So let's just pretend that the £100 on this scratch map represents me putting £100 into the global stock market.

I do that as an investor because I want broad diversification across the world.

Whenever I do that, about £2 goes into France.

We have about three quid goes into Canada, like that.

£3.30 goes into the UK.

I don't have the 30p, so I'm just gonna stick three quid there.

I'm sorry to shortchange you the UK, but it's still more than France anyway, isn't it, and that's all that matters.

Japan's kicking ass.

It's about £5.70 goes into Japan, so we will call that, we'll call that six pound.

And then America right here, well, they get this.

About £63 goes into America of every £100 that I invest.

The 4,700 or so companies that make up the American stock market account for about 60% of the global stock market's value as measured by the FTSE Global All Cap Vanguard Fund that I've used as a proxy for this.

Different funds put up different measurements.

But if we dive into this a little bit more, around £4.61 of it goes to one company, NVIDIA.

So that means that a chip designer founded in a Denny's diner in 1993 is now twice the size of France's whole stock market.

Apple gets 3.83. Let's call that four.

Microsoft gets 3.72. That's just a whole Canada right there.

Alphabet is £2.50. Amazon, £2.

Meta, £1.50. And then Tesla is £1.21, call it a quid.

These seven businesses, The Magnificent Seven they're often called, eight if we include a company called Broadcom, get roughly the same amount of cash into them out of the £100 every single time I invest as Japan, China, the UK, Canada, Taiwan, France, Germany, and India combined.

That is what we mean when we say a market has become concentrated.

Today I wanna find out, is that a bad thing? And what happens if it stops?