By Dustin Giannangelo
CEO Fusion Wealth Management
The next technology bubble burst could be ten times the size of its predecessor that started on March 11th, 2000. It is crucial to understand the current sway that the technology has over the stock market. Having a good understanding of the myths about diversification is imperative.
The top 5 companies in the S&P 500 are valued at $4.09T while 282 other stocks in the S&P 500 are valued at $4.02T. What makes today unique is the top five companies are tech stocks, and many investors are flocking to invest in these companies because of their historically great returns.
The chart and analysis below explore how an individual could be overexposed to Facebook, Amazon, Apple, Microsoft, and Google in their portfolio.
*Chart Source: BOA, 8/28/2018
Past performance is no guarantee of future results.
S&P 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. You cannot directly invest in the index.
The chart is for illustrative purposes and represents approximate percentages of each company’s market cap.
The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Fusion Wealth Management is not affiliated with Kestra IS or Kestra AS.
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Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Fusion Wealth Management, LLC is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice and are not Certified Public Accounting (CPA) firms. FINRA's BrokerCheck