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Recently, there has been a lot of articles about market concentration in the top market cap stocks.
Pop Quiz.
1. Since 1950, based on year ending market capitalization, how many different stocks have occupied the top 3 positions? (Hint, maximum number is 222)
2. At the end of 2023, the top 10 stocks were 27% of the market capitalization of the SP500. Is that the highest percentage since 1950? If not, which periods had a higher percentage?
Answers and more can be found in a MorganStanley publication.
morganstanley.com - Article stockmarketconcentrationAnswers
1. 17 (See Exhibit 2, on page 4)
2. No, 1962 to 1965 (max about 30%). The median value, by eyeballing, is about 20% for the top 3.
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