The S&P500 market’s dependence on just seven companies for 75% of earnings growth in 2024 represents a dangerous centralised concentration of risk.
Some data show that low volatility despite high concentration is historically anomalous and suggests potential complacency.
While the tech giants show robust profits, their valuations have expanded beyond their fundamental growth rates. The expected broadening of earnings growth in 2025 to include more sectors could trigger a significant rotation away from current market leaders, potentially destabilizing the entire market structure.
The fiat market’s valuation continues appearing disconnected from economic realities.
There is no second best.
The S&P500 market’s dependence…
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