Equity Market Concentration – Market Capitalization of 10 Largest Companies as Share of S&P 500 Total The S&P 500, once a broad market-based, now moves to the rhythm of its ten biggest stocks, which command over 42% of its value—far more than earnings alone would justify, amplifying volatility and eroding diversification. Image: Goldman Sachs Global…
Concentration – Top 10, Top 3 and Top 1 as % of Total (In Terms of Total Equity Market Capitalization) China has one of the lowest market capitalization concentrations worldwide, with its top ten companies comprising only 17% of total market cap—much less than the US’s 34%—indicating greater growth potential in China. Image: Goldman Sachs…
Concentration – Top 10 as % of Total (In Terms of Total Equity Market Capitalization) Compared to the U.S. market, China’s equity market currently shows a historically low level of market capitalization concentration, indicating greater growth potential. Image: Goldman Sachs Global Investment Research
Valuation – S&P 500 Concentration Median P/E While the current median P/E of the top 10 stocks relative to the S&P 500 median P/E is historically high, it is still below the peaks seen during major market bubbles like the dot-com era and the Nifty Fifty period. Image: Ned Davis Research
S&P 500 Market Concentration vs. 10-Year Annualized Forward Returns High concentration in the S&P 500 may boost short-term performance, but it often signals lower future returns, particularly during non-recessionary periods. Image: Goldman Sachs Global Investment Research
U.S. Market Concentration Indicator U.S. market concentration has declined substantially. Image: Alpine Macro
China Pollutant Concentration in Shanghai Chart suggesting that production in China is resuming, as air pollution in Shanghai is increasing. Image: Charles Schwab
Annual Average Temperature Anomaly and CO2 Concentration Chart showing the correlation between CO2 concentration and annual average temperature anomaly. Image: Morgan Stanley Research
Inequality – Concentration of Equities Ownership by Wealth Class in the U.S. The top 1% of households owns equities, while the bottom 50% of households owns real estate. Image: Goldman Sachs Global Investment Research
Climate – CO2 Concentration and Temperature over 800,000 Years This interesting chart shows the correlation between CO2 concentration and temperature over 800,000 years. Image: J.P. Morgan
Inequality – Concentration of Stock Ownership by Wealth Class in the U.S. The top 1% own 50% of stocks held by American households. Image: Yahoo! Finance