Concentration Concerns

Matthew Allgood |

 

 

 

A black background with red text Description automatically generated

 

 

 

The concentration of the S&P 500 in a few major stocks has significantly increased and continues to pose a risk for markets. For instance, Nvidia by itself now carries more influence in the index than some entire sectors. This makes the market more vulnerable to the performance of just one company. We proactively manage risks like this, aiming to build strategies that protect client portfolios from the effects of such concentrated market exposure.

 

 

Concentration Concerns

 

 

A graph of a number of bars Description automatically generated with medium confidence

 

Source: Bloomberg, Redwood. Data as of 8/28/2024.​

 

 

Regards,

Allgood Financial

Disclosure: This piece is for informational purposes only and contains opinions of Redwood that should not be construed as facts. Information provided herein from third parties is obtained from sources believed to be reliable, but no representation or warranty is made as to its accuracy or completeness. Charts and graphs are for illustrative purposes only. Discussion of any specific strategy is not intended as a guarantee of profit or loss. Past performance is not a guarantee of future results. The objectives mentioned are not guaranteed to be achieved. Investors cannot invest directly in any of the indices mentioned above. 

 

5313 Anchorage Drive | Nashville, TN  37220| 331.229.3224 | matthew@allgoodfin.com | allgoodfin.com