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It's official: The top 10% largest US stocks now reflect a record 76% of the US equity market. This has officially surpassed the previous record set before the Great Depression in the 1930s. By comparison, at the 2000 Dot-Com Bubble peak, the top 10%'s share was at ~73%. In the 1980s, this figure was below 50%. Meanwhile, the top 10 stocks in the S&P 500 now represent a record 40% of the index’s market cap. We are witnessing history.

KobeissiLetter ↗

The last time Large Cap Growth led this much, Small Cap Value went on to crush It. The Russell 1000 Growth has beaten the small cap Russell 2000 Value by 15.8% annualized over the last 3 years, a rare extreme that was also first breached on: 8/23/1991 12/22/1998 12/27/2019 The attendant mean reversion was bold (into 1994, 2003 and 2023). The strongest was the 33% per year outperformance by Small Value over Large Growth in the 3 years to September 3, 2003.

JeffWeniger ↗