JPMorgan Quants Warn of Dot-Com Style Concentration in US Stocks
- Share of top 10 stocks are nearing historical 2000 peak
- Strategists warn of a pullback led by top US equities
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The dominance of the 10 biggest stocks in US equity markets is increasingly drawing similarities with the dot-com bubble, raising the risk of a selloff, according to JPMorgan Chase & Co. quantitative strategists.
The share of the top ten stocks on the MSCI USA Index, including all of the so-called Magnificent Seven tech stocks, has risen to 29.3% by the end of December, the strategists led by Khuram Chaudhry wrote in a Tuesday note.