If you zoom out and look at the rest of the world, the concentration is significantly higher in many other markets. This is of interest to me because the majority of my stock market portfolio is in stocks outside the United States. I own value funds that have little exposure to these larger (more expensive) companies that dominate their country’s market, but the concentration is worrisome because selloffs tend to drag everything down together. If the big boys fall, they can bring the smaller stocks down with them.
Tuna Thoughts 