The average stock in the $SPX is now at its lowest level relative to the cap-weighted index since November 2002.
That's 23+ years of relative outperformance — gone.
A handful of mega-caps are carrying the entire market. Everyone else? Dead weight.
This is what concentration risk looks like. It works until it doesn't.
If you're indexing, you're basically betting on 7 stocks. If you're stock-picking, you're competing against a market that doesn't care about fundamentals anymore — just size and momentum.
History says this always ends badly. The question isn't if, it's when.
That's 23+ years of relative outperformance — gone.
A handful of mega-caps are carrying the entire market. Everyone else? Dead weight.
This is what concentration risk looks like. It works until it doesn't.
If you're indexing, you're basically betting on 7 stocks. If you're stock-picking, you're competing against a market that doesn't care about fundamentals anymore — just size and momentum.
History says this always ends badly. The question isn't if, it's when.