Bank of America puts the peak concentration levels of several major historic bubbles side by side: the railroad era at 63%, Japan’s stock market at 44%, the internet bubble at 41%—and today AI-weighted “Big 10” stocks are also up to 41%.
Several times when the market topped, they all hovered around 40%. High concentration doesn’t automatically mean a top, but if it can climb to this line, it has never been cheap. How to position your holdings is up to you to weigh.
Several times when the market topped, they all hovered around 40%. High concentration doesn’t automatically mean a top, but if it can climb to this line, it has never been cheap. How to position your holdings is up to you to weigh.
