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Passive investing
As a result of passive investing, the largest 7 companies by market cap comprise ~50% of the NASDAQ Composite index. Just 6 of those 7 comprise nearly 25% of the S&P 500. So when you hear people saying “the market is up” or “the market is down”, understand that what they are looking at is an index, and that index is primarily a small handful of companies.

Joey Hirendernath's avatar
Very true...the magnitude that these companies can affect the index is something that is often overlooked.
FiNiche's avatar
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