There has been a lot of concern recently about the stock market being top-heavy, dominated by just a handful of companies, and that this might spell trouble for future returns. But really what we should worry about isn’t that the market is reliant on a few stocks. It’s that the market is reliant on a few very similar stocks. The five biggest companies today—Apple, which passed $2 trillion in market value this week, Amazon, Microsoft, Alphabet and Facebook—make up 25% of the market value of the S&P 500. That is the most...

Source: Wall Street Journal August 22, 2020 13:09 UTC