We are living through an extraordinary market environment. The level of concentration in many equity benchmarks has increased significantly.
The evidence is striking. The 10 largest companies in the S&P 500 represent nearly 40% of the index, a level not seen since the mid-1960s. Semiconductor-related companies are approaching one-fifth of the S&P 500. In emerging markets, the exposure is even more acute: three companies alone — TSMC, Samsung and SK Hynix — represent 29% of the MSCI EM Index.
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