Concentration of Stock Ownership by Wealth Bracket As the chart shows, the top 20% wealthiest American households own over 93% of stocks. You may also like “How the Composition of Wealth Changes from the Middle Class to The Ultra Rich?” and “U.S. Net Worth by Wealth Bracket.” Image: Visual Capitalist
Mega-Cap Growth & Tech Positioning Positioning in mega-cap growth and tech stocks remains low at the 26th percentile, indicating investor caution in light of elevated valuations and market concentration. Image: Deutsche Bank Asset Allocation
S&P 500 Valuation Multiples Overvaluation in the S&P 500, especially among tech and AI stocks, is a legitimate concern in light of downward revisions to earnings estimates for 2025 and the high degree of index concentration. Image: Real Investment Advice
Top 10 Companies’ Share of Market Capitalization China’s stock market concentration is moderately lower than that of the United States. Image: Goldman Sachs Global Investment Research
Market Capitalization of the Largest Stock Relative to the 75th Percentile Stock The U.S. equity market is experiencing historically high levels of concentration, primarily driven by the dominance of a small group of mega-cap tech companies. This concentration is at levels not seen in nearly a century. Image: Goldman Sachs Global Investment Research
Equal-Weight vs. Aggregate S&P 500 Annualized 10-Year Returns Given the high concentration in today’s S&P 500, long-term investors may benefit from considering an equal-weight strategy in the current market environment. Image: Goldman Sachs Global Investment Research
Top Five Companies % of S&P 500 Market Capitalization The S&P 500 is experiencing unprecedented levels of concentration. While the concentration presents potential risks, the fundamentals of the top 5 companies remain strong, with elevated profit margins and robust cash flow generation. Image: Deutsche Bank
Market Capitalization of the S&P 493 as Share of Index Total The 493 smallest stocks in the S&P 500 now account for just 67% of the index’s market capitalization, a record low. This reflects a trend where a few large companies dominate, raising concerns about market concentration. Image: Goldman Sachs Global Investment Research
Seven Largest Companies as Share of S&P 500 Total Market Capitalization The seven largest stocks in the S&P 500 index account for 33% of its total market capitalization. While this high concentration doesn’t necessarily predict market downturns, it can potentially lead to increased volatility. Image: Goldman Sachs Global Investment Research
S&P 500 Top 5 Stocks’ Weight vs. 1-Year Forward Returns While the current high market concentration is a significant feature of today’s market landscape, it doesn’t necessarily predict poor performance in the near term. Image: Goldman Sachs Global Investment Research
Correlation Between Top 10 and S&P 500 While the concentration of large-cap stocks in the U.S. equity market is a topic of discussion, the evidence suggests that its impact on market behavior is not as alarming as some might believe. Image: S&P Dow Jones Indices