Episode 291: The Rise of the Magnificent Seven: Are They Becoming Too Big?

2025-01-14

In this episode of Think Smart with TMFG, hosts Rob McClelland and Mike Connon delve into the increasing concentration of the stock market, focusing on the dominance of massive corporations known as the Magnificent Seven. Explore how companies like Apple, Nvidia, and Meta are not just leading in the US but also on a global scale, and what this means for investors and market dynamics. The hosts compare market concentration across different countries, revealing interesting contrasts...

In this episode of Think Smart with TMFG, hosts Rob McClelland and Mike Connon delve into the increasing concentration of the stock market, focusing on the dominance of massive corporations known as the Magnificent Seven. Explore how companies like Apple, Nvidia, and Meta are not just leading in the US but also on a global scale, and what this means for investors and market dynamics.

The hosts compare market concentration across different countries, revealing interesting contrasts between tech-heavy industries in the US and traditional bank-led markets in Canada. The discussion extends globally, highlighting market trends in China, Germany, France, Saudi Arabia, and more, as these nations also exhibit varying levels of corporate concentration.

Discover the mechanisms by which these giants grow, often through acquisitions, and the resultant impact on market structure and investor strategies. The episode underscores the importance of diversification in investment portfolios and how sector-specific concentrations in different countries necessitate a broadened investment perspective.

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