Apr 10, 2026 · 21 min · 17 segments
The S&P 493 is gaining attention as investors look beyond the Magnificent Seven and reassess where growth and diversification may come from in today’s equity markets. With market concentration at…
When I look at the US equity market today, the top ten stocks, as I think a lot of people know, are forty percent of the index.
And if you look at the US market over a hundred years, we've had many periods of time where the market has been concentrated.
Going into the Great Depression, the market was dominated by radio, by autos, by a variety of companies.
Going into the nineteen fifties, we had the Nifty Fifties, Johnson & Johnson, Xerox.
Going into the dot-com bubble, we had a real concentration in tech stocks like Cisco.
During COVID, we had concentration, and now today we've got the Magnificent Seven.
And when you look at that concentration, there's always been periods of time where we've had market concentration, but it's really never been this concentrated.
So what you're saying is it's not unusual for companies to make up an outsized proportion of the index.
When I look at the US equity market today, the top ten stocks, as I think a lot of people know, are forty percent of the index.
And if you look at the US market over a hundred years, we've had many periods of time where the market has been concentrated.
Going into the Great Depression, the market was dominated by radio, by autos, by a variety of companies.
Going into the nineteen fifties, we had the Nifty Fifties, Johnson & Johnson, Xerox.
Going into the dot-com bubble, we had a real concentration in tech stocks like Cisco.
During COVID, we had concentration, and now today we've got the Magnificent Seven.
And when you look at that concentration, there's always been periods of time where we've had market concentration, but it's really never been this concentrated.
So what you're saying is it's not unusual for companies to make up an outsized proportion of the index.
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