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Stock returns



I came across 'this' the other day.

“If you separate out the top

06:22 five or six stocks from the US equity market and  just look at how the other 490- something stocks

06:28 behave, they look, in some ways, more like the  euro stock index, right? So they've been flat-ish

06:34 for the past decade or so, whereas the top five,  six, seven, stocks have really lifted the whole

06:39 index. So if you separate those super companies  out, there's less of a difference in some ways.”

(11) Lyn Alden's Macro Masterclass (w/ Raoul Pal) - YouTube

Can you, or anyone else, validate this assertion {and quantify the 'less of a difference in some ways'}?

Hi @james-charles

Yes, Lyn is correct. If you extract the best 10 performing tech names from the S&P then the performance looks a lot like the international market. Most of the exceptional US performance has come from a very small number of stocks.


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Thanks for that.