Major Mag 7 Drawdown: You Heard It Here First 🔮
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Episode Description
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Brief Summary
Market concentration risks could lead to trillions in losses by 2025.
Key points
- Market Concentration Risks. The concentration of the top companies in indices is nearing 40%, foreshadowing potential drawdowns.
Transcript
what started as an ugly day on Wall Street has turned downright hideous this is a major percentage Smackdown apple is taking look at Nvidia that concentration risk has been real and we're seeing it manifest itself in how markets have been performing and the dispersion even among the mag 7 shath who do you predict will be the biggest business loser of 2025 I don't know what the percentage draw down from here will be but I think when we look back the absolute dollar draw down of the mag 7 will be in the trillions of dollars and the reason is not necessarily because of the underlying fundamentals of these companies but I am
a little bit worried and I tweeted this a few days ago about just the general concentration of the top seven 8 nine 10 companies in the indices I think it's approaching 40% and I think that when you look at these historic concentrations they've generally foreshadowed a big draw down and unfortunately I don't see how you can inoculate yourself from that risk it could even be 10% but 10% will be a couple trillion bucks
