The S&P 500 Is Doing Something That Hasn't Been Seen in Nearly 100 Years. Here Are the 10 Most Important Stocks to Keep an Eye On.
Concentration levels in the S&P 500 are at their highest levels since 1932.
An interesting psychological aspect of stock market dynamics is that investors often fall into the trap of viewing times of favorable or unfavorable conditions through a binary lens. What I mean by that is it's not uncommon for investors to follow the herd and recency bias when picking and choosing stocks.
Several eye-opening trends are fueling the movements across the S&P 500 (SNPINDEX: ^GSPC) right now. What's going on in the index can be tied to the phenomena above to help shed some light on what stocks investors should keep a close eye on as the market swings from one extreme to another.
According to a research report published by investment bank Goldman Sachs, concentration levels within S&P 500 are hovering around their highest levels in 93 years.
