🚨 ATTENTION: Record concentration risk in the S&P 500 🚨
The global financial market enters the red zone on January 17. The structure of the S&P 500 shows levels of fragility higher than the major collapses of 1929, 2000, and 2008.
The data you need to know:
🔴 Extreme Concentration: The 10 largest companies now account for 42% of the index (in 2008 it was only 20%). If they fall, they drag down the entire market.
💰 Inflated Valuations: The P/E ratio of Big Tech is alarming: NVIDIA (60+) and Microsoft (35) exceed their own historical records.
⚠️ Dangerous Precedent: We are in an unprecedented scenario; the index relies on a handful of names while multiples reach unsustainable levels.
Market complacency is the biggest current risk. A correction in the tech sector could trigger an unprecedented domino effect on the global economy.