Their market caps have swelled by a third in 2020, resulting in them holding a 22% share of the S&P 500. That's the largest concentration of any group of top-five stocks since at least 1980, and up from the peak of 18% during the tech bubble, Goldman Sachs' data shows.
To illustrate what is at stake, Kostin separated the so-called FAAMG stocks' returns this year from the remaining companies on the S&P 500. The chart below shows these mega caps have returned 35% while the S&P 500 has returned 2%. And if these companies are excluded, the remaining 495 constituents would be down by 5% year-to-date.In essence, any major slip-up in the upper ranks of the index could result in huge losses for the broader market.
He is not forecasting a 2000-like implosion of the big five. Of course their valuations are elevated — at 31 times 2021 earnings per share versus 18 times for the rest of the S&P 500. But this premium still falls short of the high watermark left during the tech bubble. And this time around, the top stocks actually have earnings growth and quality balance sheets to show for their performance.
Source: News Formal (newsformal.com)
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Inside TikTok star Dixie D'Amelio's music business, making 'Be Happy' - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. TikTok is a China spy app!!! Don't use it. BanTiktok You dont need major record label nowadays.. You can literally record it at home, and as long as you have the croud just like she did, the song will be doing well
Source: BusinessInsider - 🏆 729. / 51 Read more »
Inside the life and career of Robert Mercer, a former Trump mega donor - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Publicly absent. Mr. Mercer should pay his taxes instead of throwing money at politicians. seen Trump's true colors for what he really is
Source: BusinessInsider - 🏆 729. / 51 Read more »
Stock market crash: David Rosenberg warns bear market isn't over - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. The more money printing the more asset prices will keep going up over the long run The Great Depression had cyclical bull markets with a secular bear market. This time is no different.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Dow Falls 150 Points After China Retaliates By Ordering Shutdown Of Chengdu ConsulateThe Dow fell 150 points this morning after China retaliated by ordering the U.S. to close its consulate in Chengdu by skleb1234 skleb1234 What's the stock market going to do when 400 million Chinese citizens are displaced by the collapse of the three gorges dam? skleb1234 Jeez..can't we all play nice amicably?...for the sakes of our heartless Wall Street... chenweihua skleb1234 Let's speed this up a bit: Close ALL US Consulates in CCP Controlled China, including HK Restore full diplomatic ties with Taiwan, relocate all US personnel from China consulates to Taiwan consulate. Order all China consulates closed in the US. WarRoomPandemic
Source: Forbes - 🏆 394. / 53 Read more »
Dow Falls Nearly 200 Points After China Retaliates By Ordering Shutdown Of Chengdu ConsulateThe Dow fell nearly 200 points today after China retaliated by ordering the U.S. to close its consulate in Chengdu by skleb1234 skleb1234 realDonaldTrump gonna address these numbers? No? skleb1234 👎BEE ESSS🤣🤣🤣 skleb1234 Wishing safety to the U.S. citizens.
Source: Forbes - 🏆 394. / 53 Read more »
Seeking nominations for the executives who are leading the next wave of marketing tech - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »