The top 10 stocks in the S&P 500 are now commanding 40% of the index's total market cap while accounting for just 32% of forward non-GAAP earnings. This growing divergence between valuation weight and earnings contribution raises questions about concentration risk and whether the current market leadership is sustainable. Worth monitoring how this disparity plays out through earnings seasons.
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The top 10 stocks in the S&P 500 are now commanding 40% of the index's total market cap while accounting for just 32% of forward non-GAAP earnings. This growing divergence between valuation weight and earnings contribution raises questions about concentration risk and whether the current market leadership is sustainable. Worth monitoring how this disparity plays out through earnings seasons.