So… market concentration. It’s topical. And it’s extreme. It’s topical because it’s extreme.

At this point, it’s hard to say whether the enormous weight of the mega-caps is worth remarking on given the ad nauseam nature of this perpetual topic du jour.

But given the proximity (next week) of earnings releases from four of the “Magnificent 7,” and considering the market’s adverse reaction to quarterly updates from Alphabet and Tesla (this week), I thought I’d (re)highlight the figures below.

Those are up to date though mid-month, and what they show, in no uncertain terms, is that we’re in totally uncharted territory.

As Goldman noted, you’re allocating 29 cents out of every dollar and 37 cents out of every dollar, respectively, to the top five and top 10 names every time you buy a share of SPY (or any S&P index fund).

Needless to say, that means next week’s reports from Apple, Amazon, Meta and Microsoft are mission critical. As Goldman’s Scott Rubner put it, “the bar and stakes could not be higher — they need to be great.”

Yes, they need to be great. Or better yet, magnificent.

Note that on an eight-session rolling basis, the Magnificent 7 just experienced their worst pullback since October, when US yields peaked for the cycle.