kipchak
Joined 8 years ago
Joined 8 years ago
This is pretty close to current concentration, but the current top 10% is basically all technology except for Eli Lily at 1.5%, so in that sense it's arguably unprecedented.
There's a good chart here on page 5 of top 10 weights over time, and on 6 of how the 1965 top 10 fared to 2025.
https://corporate.vanguard.com/content/dam/corp/research/pdf...
To me the diversification hedge options (say GUNR) seem like they are helping you get closer to regime neutral. Or in other words you are giving up returns to cover more macro scenarios and betting less on what the future looks like.
https://workplace.vanguard.com/content/dam/inst/iig-transfor... (page 78)
It also increases the immiseration of those in the areas replaced[3], which is likely a contributor to rising populism and political instability. Most of this malaise is just hidden in places like the Rust Belt.
[1]https://www.csis.org/analysis/rare-earth-export-restrictions...