Market concentration reflects exceptional execution, not a bubble

26 days ago

"Now, if these seven stumble, the entire index is going to feel it. But this isn't dot com where worthless companies got billiondoll valuations. The market is correctly pricing the fact that these seven companies generate the majority of the actual profit growth in the entire index. So in this case, the concentration isn't a bubble. It's the result of exceptional execution."

The speaker challenges the prevailing bubble narrative by highlighting that the concentration in the Magnificent 7 is a result of strong profitability and real earnings growth, contrasting current fundamentals with the dot-com era's overvaluations.

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