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<p>(from 2 years ago)</p>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="S&amp;P 500 - All Time High Concentration (and it could get worse)" width="500" height="281" src="https://www.youtube.com/embed/PD2doxvuVe0?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
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<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Market concentration has nearly doubled in the last ten years, says Morgan Stanley&#039;s Mauboussin" width="500" height="281" src="https://www.youtube.com/embed/UJv5gGCOExg?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
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<p>(from this week)</p>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="This Metric Has Only Happened 4 Times Before: 1987, 2009, 2020 And Now" width="500" height="281" src="https://www.youtube.com/embed/FSLE9ip-66c?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
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<p>While this topic makes for great clickbait it&#8217;s just another variation of the &#8220;this time is different&#8221; argument. Concentration is not new or different. Vilfredo Pareto noted this a long time ago.</p>



<p><a href="https://www.masterclass.com/articles/pareto-principle-explained">https://www.masterclass.com/articles/pareto-principle-explained</a></p>



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<p>Right or wrong&#8230;.If an index is &#8220;too concentrated&#8221; how about we just keep cash on the sidelines. Even better, let&#8217;s change the amount on the sidelines proportional to the &#8220;overconcentration&#8221;.</p>


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