There are a lot of companies that could make you abnormal returns in the stock market. In the recent past, some of the top gainers have been some of the largest companies in the world. What does this leave us with? It leaves us with a stock market that is extremely concentrated at the top. This is not, necessarily, a bad thing, but it definitely decreases the amount of diversification there is in owning an index fund tracking the S&P 500. This can be perfectly fine, and has been in the past, but it could also end with lots of losses for index investors if something went awry. Today, we will discuss:
1. What the S&P 500 is
2. How the S&P 500 is highly concentrated at the top
3. The returns offered by the largest companies in the world vs. the S&P 500
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