{"id":14394,"date":"2026-10-20T13:56:06","date_gmt":"2026-10-20T13:56:06","guid":{"rendered":"https:\/\/zacksim.com\/blog\/?p=14394"},"modified":"2026-10-20T13:56:07","modified_gmt":"2026-10-20T13:56:07","slug":"is-the-2024-concentration-scare-back","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/is-the-2024-concentration-scare-back\/","title":{"rendered":"Is the 2024 Concentration Scare Back?"},"content":{"rendered":"\n

How Investors Should View Narrowing Market Breadth<\/strong><\/h2>\n\n\n\n

In the past six weeks or so, we\u2019ve seen a sharp narrowing of market breadth in the U.S., which means fewer individual stocks are participating in the market\u2019s gains\u2014even as major indexes continue trading near record highs. September was particularly narrow. Technology gained approximately 5.5%, while nine S&P 500 sectors finished the month in negative territory.<\/p>\n\n\n\n

As breadth has narrowed, familiar fears have returned.<\/p>\n\n\n\n

Some readers may recall 2024, when the \u201cMagnificent Seven\u201d were dominating returns and many worried the market was over-concentrated in a handful of tech behemoths. Today, fewer than half of S&P 500 stocks are trading above their 200-day moving averages, and more than 200 companies in the index have posted negative returns in 2026. As I write, the median stock is up only about 4%, compared with a roughly 14% gain for the overall S&P 500. 1<\/sup><\/p>\n\n\n\n

But the reckoning for over-concentration never really arrived in 2024, and I don\u2019t think investors should read too much into the narrowing trend we\u2019ve seen in recent weeks.<\/p>\n\n\n\n

For one, the equal-weight S&P 500, which gives each company the same influence regardless of its market capitalization, has generated a total return of approximately 12.5% this year. That trails the return for the market-cap-weighted S&P 500 by a couple of percentage points, but it’s still a substantial gain. In my view, this speaks to the ability to diversify away some of the over-concentration risk.

Are Market Gains Telling the Whole Story?<\/a><\/u><\/strong><\/p>\n\n\n\n

Major indexes may be near record highs, but many individual stocks have struggled to keep pace. Understanding what\u2019s driving the market and how to interpret the gaps can help you keep recent performance in perspective.<\/p>\n\n\n\n

Get a closer look at the forces shaping stocks and the broader economy in our October Stock Market Outlook Report\u00b2<\/a><\/u><\/em><\/strong>, with insights to help you make informed investment decisions.<\/p>\n\n\n\n

Inside, you’ll learn:<\/p>\n\n\n\n