30 Largest Stocks as a Percentage of S&P 500 Market Capitalization The 30 largest stocks account for 53% of the S&P 500’s total market capitalization, raising concerns about the index’s concentration and potential risks. Image: Morgan Stanley Wealth Management
S&P 500 Valuation – Real Market Capitalization to Real GDP Ratio The inflation-adjusted market capitalization to GDP ratio is a valuable tool to evaluate the U.S. stock market’s valuation. The high current ratio implies a potential overvaluation. Image: Real Investment Advice
Valuation – U.S. Equity Market Capitalization to GDP The U.S. equity market cap to GDP ratio is near an all-time high at approximately 187%, suggesting a significant overvaluation of the U.S. stock market. Image: Goldman Sachs Global Investment Research
Stocks – Short Interest in Magnificent 7 as a % of Market Capitalization Short interest in the Magnificent 7 stocks is rising, as their high valuations have raised concerns among investors. Image: BofA US Equity & Quant Strategy
Top 5 Stocks as % of S&P 500 Market Capitalization The S&P 500 remains more concentrated in the five largest stocks than during the dotcom bubble, posing potential risks if these stocks underperform and raising concerns about diversification and market stability. Image: Morgan Stanley Wealth Management
Top 5 Stocks % of S&P 500 Market Capitalization Does the current concentration of the S&P 500 in the five largest stocks suggest a potential bull trap, particularly as it is more pronounced than during the dotcom bubble? Image: BofA Global Investment Strategy
Big Tech Stocks % of S&P 500 Market Capitalization Will the weight of big tech stocks in the S&P 500 continue to decline in 2023? Image: BofA Global Investment Strategy
Total Equity Market Capitalization per Country The United States has the largest equity market capitalization in the world (over $41 trillion as of December 31, 2022). Image: Goldman Sachs Global Investment Research
Market Capitalization as % of S&P 500 Should investors underweight the tech, communications services and consumer discretionary sectors? Image: BofA Research Investment Committee
Central Bank Liquidity and “Big Tech” Market Capitalizations Will QT continue to impact tech stocks? Image: BofA Global Investment Strategy
Annual Change in Global Equity Market Capitalization The global equity market capitalization has lost $30tn year-to-date. Image: Goldman Sachs Global Investment Research