Six Companies Now Make Up Over 30% of the S&P 500

The mega caps keep growing. Microsoft, Nvidia, Apple, Alphabet, Amazon and Meta now make up more than 30% of the S&P 500. This is unprecedented in history.

Too big to fail does not apply to financial institutions anymore and we live in an era of monopolies and oligopolies.

This is the first time in history that six companies have made up over 30% of the S&P 500. In addition, historically when a major concentration occurs, it has not ended well for the financial markets.

The risks of overconcentration is that these six companies see a turn down in their business. With investors and funds over allocated, the rush for the exit could create a market crash.