The S&P 500 is setting one new all-time high after another in 2024. The widely used stock market benchmark climbed 15% in the first half of 2024, and it’s up more than 50% from the lows of the 2022 bear market.
The largest companies have led the current market rally in the S&P 500. In fact, market concentration is reaching levels investors haven’t seen since the 1970s.
The rising market concentration is a result of various factors. It’s worth pointing out that many of the largest companies have seen solid earnings growth as they’ve been well positioned amid the artificial intelligence boom. But rising concentration has historically reversed, and one market indicator suggests the tides may be about to turn.
U.S. money supply is finally growing again
Declining growth in money supply is historically tied to increased concentration among stocks, according to Khuram…
