I was quite intrigued to this chart today, which illustrates that even though there are thousands of individual securities in the market, it’s really all about just a handful of them. Control these, and you control everything else.
The last time there was such a dense concentration in just five stocks was back in 2000, just before the crash. It’s different this time, though. It’s different because it’s way worse. First, it’s worse in the respect that these super-concentration happened much, much faster, and second, it’s worse since the concentration actually dwarfs the level seem in March 2000.
Below are these “Big Five” stocks that are holding everything up. I am presenting them in the order of strength, in my opinion, from the strongest (Microsoft) to the most vulnerable (Alphabet). These valuations are simply eye-popping at this point, but as the useless old saying goes, it’ll just keep working until it doesn’t.
