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. 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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