🚨 U.S. stock market concentration is at record levels. The S&P 500 Herfindahl-Hirschman Index (HHI) is now near 195, one of the highest readings ever. This metric measures how evenly market cap is distributed across the index and the message is clear: fewer stocks are driving performance. Concentration has more than doubled since 2020. For context: during the 2000 dot-com bubble, HHI peaked around 125. Index strength ≠ broad strength. When the leaders crack, the index cracks. ⚠️📉

🚨 U.S. stock market concentration is at record levels.

The S&P 500 Herfindahl-Hirschman Index (HHI) is now near 195, one of the highest readings ever.

This metric measures how evenly market cap is distributed across the index and the message is clear:
fewer stocks are driving performance.
Concentration has more than doubled since 2020.

For context: during the 2000 dot-com bubble, HHI peaked around 125.
Index strength ≠ broad strength.

When the leaders crack, the index cracks. ⚠️📉