European Capital Partners - Unwarranted concentration Discover this fund | European Capital Partners
Asset management and fund structuring boutique

Unwarranted concentration

Jul 11, 2023

The 10 biggest stocks by market capitalization currently represent 31.7% of the S&P 500, the biggest concentration of the US stock market in 30 years. Is this really justified by fundamentals? We believe not as earnings only represent 21.5% of the profits generated by the companies in the S&P 500. This is a rather average earnings contribution compared to the last three decades.

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