However, in moments when markets are this concentrated, it is paramount that investors seek diversification across portfolios and do not lose sight of the less dominant sectors, regions, and lower market-cap companies that have proven to pay off in the long run.
The big get bigger
US equity markets have reached their highest levels of concentration since 1970s.
The largest names have generated above-average returns, and this has led to ever increasing concentration levels.
For instance, looking at the S&P 500, we can see how the top ten securities represent nearly a third of t…
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