Post by Augustine Chiagozie (@pabloexchange)

๐Ÿ“ˆ The S&P 500 has never been this concentrated

At the peak of the dot-com bubble, it took 32 stocks to make up half of the S&P 500. Today, it takes just 24, making the index more concentrated than at any point in its history.
Since ChatGPT launched, 42 AI-related companies have generated up to 75% of the index's returns, profit growth, and capital spending.
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That concentration is becoming a bigger risk. Short interest across the S&P 500 has climbed to its highest level since 2010, while AI infrastructure spending continues to outpace cash flow at some companies.
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When a small group of stocks drives most of the market, any disappointment can have an outsized impact on the entire index.

๐Ÿ“ˆ The S&P 500 has never been this concentrated At the peak of the dot-com bubble, it took 32 stock...

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