Diversification is dying. For every $1 invested in the S&P 500, ~41 cents now goes to just the 10 largest stocks. Nvidia, $NVDA, alone accounts for 8 cents, followed by Apple, $AAPL, at 7 cents, Microsoft, $MSFT, and Alphabet, $GOOGL, at 6 cents each, and Amazon, $AMZN, at 4 ce

Diversification is dying. For every $1 invested in the S&P 500, ~41 cents now goes to just the 10 largest stocks. Nvidia, $NVDA, alone accounts for 8 cents, followed by Apple, $AAPL, at 7 cents, Microsoft, $MSFT, and Alphabet, $GOOGL, at 6 cents each, and Amazon, $AMZN, at 4 cents. The next 5 mega-cap names, Broadcom, $AVGO, Meta, $META, Tesla, $TSLA, Micron, $MU, and AMD, $AMD, represent another 10 cents combined. By comparison, the next 10 largest firms account for just 10 cents combined. The top 10 stocks now represent almost 2x the allocation of 402 other companies in the index, which together account for just 23 cents of every $1. Big Tech effectively is the market.