, Columnist
Market Herding Is Everywhere, Not Just the US
The concentration at the top of the S&P 500 isn’t as bad as in many countries, but global indexes are a more diversified alternative.
It’s hard to break free. Above: A cowboy and herd in Brazil.
Photographer: Mauro Pimentel/AFP/Getty
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The US stock market is abnormally concentrated. You’ll have read plenty about it in Points of Return and many other outlets, as the S&P 500 grows more top-heavy, by various measures, than has ever been seen before — thanks largely to the dominance of the so-called Magnificent Seven internet platform groups. The S&P’s 10 biggest companies on their own account for more than 32% of the index.