Time, Diversification and the Volatility of Returns

Time, Diversification and the Volatility of Returns This chart shows how the volatility of returns decreases over time (range of equity, bond and blended total return). Picture Source: J.P. Morgan Asset Management

S&P 500 – Top 10 U.S. Companies by Market Capitalization Relative to Total

S&P 500 – Top 10 U.S. Companies by Market Capitalization Relative to Total The dominance of the top 10 U.S. companies in the S&P 500 Index by market capitalization can raise concerns about the index’s ability to provide adequate diversification for investors. Image: Strategas Research Partners

Infrastructure Flows

Infrastructure Flows Infrastructure funds have seen their largest inflow since June 2022, signaling a positive trend for investors aiming for long-term returns and portfolio diversification. Image: BofA Global Investment Strategy

Top 10 Stocks as % of S&P 500

Top 10 Stocks as % of S&P 500 The S&P 500 is more concentrated in the 10 largest stocks than during the dotcom bubble, which is causing diversification concerns for some investors. Image: Goldman Sachs Global Investment Research

S&P 500 Equity Risk Premium

S&P 500 Equity Risk Premium Despite potential in U.S. equities, the decline in equity risk premium suggests caution is needed, prompting diversification across asset classes for risk management. Image: BofA Global Research

Top 10% of Stocks by Size vs. The Entire U.S. Stock Market

Top 10% of Stocks by Size vs. The Entire U.S. Stock Market The market cap concentration among the top 10% largest U.S. stocks raises concerns about the lack of diversification and its impact on market stability. If these stocks perform poorly, significant risks may emerge. Image: Deutsche Bank