GM

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Little pump back upward on market open, we’ll see where the day takes us

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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

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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?

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Wiki explanation

= anti-competitive barriers to entry, economies of scale, and the like

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^ “flight to quality”, which strongly tends to happen when markets are in trouble

— really is largely just flight to liquidity

Not “quality” or “safety” in much of any other sense, largely just dumb flight to liquidity

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