Thin, Thinner, Thinning

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Webster's definition for the verb form of "thin" is to become less dense, crowded, or numerous. Thin, thinner, thinning. Market leadership has certainly thinned in recent months and is now quite thin indeed. As of about a month ago Goldman Sachs put out this list of just 10 stocks having contributed 122% of the S&P 500 year-to-date return meaning that the ENTIRE other 490 stocks suffered losses in the aggregate:

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The S&P 500 Index returned 1.8% for the first half of 2018. If you remove the famous FAANG stocks (Facebook, Apple, Amazon, Netflix, and Google) plus Microsoft, then the return would have fallen to -0.73%. This means that increasingly, recent stock market gains have been generated by price gains in the gargantuan tech stocks. These stocks have come to dominate the US stock market averages. Just five of these huge companies (throw out Netflix for now) have a combined market capitalization of over $4 trillion dollars. This sum is equal to the entire combined market value of the smallest 282 companies in the S&P 500!  

(Additional investment specific commentary follows for client subscribers)

References:

https://techcrunch.com/2018/07/26/facebook-officially-loses-123-billion-in-value/
https://www.cnbc.com/2018/07/10/amazon-netflix-and-microsoft-hold-most-of-the-markets-gain-in-2018.html
https://www.financialsense.com/chris-puplava/and-then-there-were-none-0
https://twitter.com/michaelbatnick/status/1019680856837849090
https://www.merriam-webster.com/dictionary/thin

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