Monday, September 14, 2020

U.S. stocks' big five make their industries appear heavy

U.S. stock investors need to be mindful of a “heavy concentration” in industry groups encompassing the S&P 500 Index’s five most valuable companies, David Kastner, a strategist at Charles Schwab Corp., wrote Thursday in a blog post. Two of them, Apple Inc. and Microsoft Corp., are part of the technology group. Google’s owner, Alphabet Inc., and Facebook Inc. are both in communications services. Amazon.com Inc. is a consumer-discretionary company. The sectors together exceeded 50% of the S&P 500’s weight from Aug. 18 through Thursday, according to data compiled by Bloomberg. They were last above that threshold in 2000, when their total weight peaked at 54%.

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