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Indeed the stock market concentration — fraction of the market value that’s in the top few stocks — is way too high
Burn big tech
🄳🄾🄾🄼🄿🄾🅂🅃🄸🄽🄶
Burn big tech
🄳🄾🄾🄼🄿🄾🅂🅃🄸🄽🄶
💯8🙏2
Some will pretend that the small caps getting crushed is a brand new new thing caused by the tariff wars
— When really this problem has been building up for ~7 years, since 2018,
Which you can see if you look at the market concentration charts
So what’s causing it?
Why are the mag7 dominating, while small caps get crushed?
“Flight to quality”, which really mostly means flight to most liquid and biggest market caps — is the first explanation that comes to mind,
But feels like there must be much more to it thatn that?
🄳🄾🄾🄼🄿🄾🅂🅃🄸🄽🄶
— When really this problem has been building up for ~7 years, since 2018,
Which you can see if you look at the market concentration charts
So what’s causing it?
Why are the mag7 dominating, while small caps get crushed?
“Flight to quality”, which really mostly means flight to most liquid and biggest market caps — is the first explanation that comes to mind,
But feels like there must be much more to it thatn that?
🄳🄾🄾🄼🄿🄾🅂🅃🄸🄽🄶
👀4🔥3