American diversity

At its peak in the early 2000s, Nokia, the one-time paper mill turned mobile technology leader accounted for 72% of the value of the stock market in Finland. Currently, the largest company by market capitalization, Nordea Bank, accounts for a still substantial 17% of Finland’s market.  After more than doubling in 2023, the Bloomberg Magnificent Seven index has risen 12.7% year-to-date versus the S&P 500, excluding the Seven at 5.0%. Notably, six of the Magnificent Seven firms beat earnings expectations during the fourth quarter reporting period, and their collective net income rose 44% year on year. As a result, investors are again concerned that the market is too concentrated.  However, according to the 2024 UBS Global Investment Returns Yearbook, the US remains among the least concentrated of global markets. The largest stock by market capitalization, Microsoft, accounts for 6% of the total US market, and the ten largest combined account for 25%. 

Source: UBS, February 2024