⚠️ Think you're diversified because you own the S&P 500? 7 stocks would like a word 🤣
Nearly a third of the S&P 500 (about 33%) now sits in just the "Magnificent 7". If the index is your ONLY holding, your returns are effectively riding on a handful of tech names — you're more concentrated than you think.
And we just watched what concentration can do. On 23 June, Korea's KOSPI plunged almost 10% in a single day — its biggest point drop on record — because just two chip stocks, Samsung and SK Hynix, make up nearly HALF that index. When they fell, the whole market fell with them. It rebounded within days, but that's the point: concentration means someone else's bad week becomes your bad week.
Does that mean sell everything? No.
S&P earnings estimates are still being revised upward (~$336 consensus for 2026, ~$385+ projected for 2027) — the fundamentals are holding up. The issue isn't the market. It's holding ONE market and calling it a portfolio.
The fix is simpler than people think: spread exposure across regions and sectors that don't move together. Emerging markets, for instance, are up over 25% this year — and most portfolios I see intially have ZERO exposure there.
When did you last stress-test your portfolio for concentration risk? If the answer is "never" or "not sure", a conversation with me is a lot cheaper than finding out the hard way 🤐
July 11, 2026 161 1
