Yesterday, when looking at the composition of the ongoing market meltup, Morgan Stanley flagged just how uneven the leadership distribution has become highlighting the “other 1 percent”, namely the handful of tech names that have been responsible for the bulk of the S&P’s move higher in 2019, and noting “that in a world of low growth, limited pricing power and now rising costs, it’s clear that bigger is better and scale matters.” As a result, “currently, the top five companies in the S&P 500 (the other 1 percenters) make up 18% of the total market cap.”
http://An “Unprecedented Divergence” Has Opened Between Stocks And Earnings
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