
Recent stock market movements have focused attention on the risks of over allocating to an equity index dominated a small group of companies in the same sector. This is currently the case with the preponderance of 10 (tech) behemoths in the US S&P500. Raul Leote de Carvalho, Deputy Head of the Quant Research Group, and Chief Market Strategist Daniel Morris put this concentration into context. They conclude that as long as market valuations rise in synch with profitability, the companies’ index dominance can be justified, but there's no margin for error. Raul suggests two ways of managing the related risk of high volatility.


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Recent stock market movements have focused attention on the risks of over allocating to an equity index dominated a small group of companies in the same sector. This is currently the case with the preponderance of 10 (tech) behemoths in the US S&amp;P500. Raul Leote de Carvalho, Deputy Head of the Quant Research Group, and Chief Market Strategist Daniel Morris put this concentration into context. They conclude that as long as market valuations rise in synch with profitability, the companies’ index dominance can be justified, but there's no margin for error. Raul suggests two ways of managing the related risk of high volatility. For more insights, visit Viewpoint: <a href="https://viewpoint.bnpparibas-am.com/">https://viewpoint.bnpparibas-am.com/</a> Download the Viewpoint app: <a href="https://onelink.to/tpxq34">https://onelink.to/tpxq34</a> Follow us on LinkedIn: <a href="https://bnpp.lk/am">https://bnpp.lk/am</a> Hosted by Ausha. See <a href="https://ausha.co/privacy-policy">ausha.co/privacy-policy</a> for more information.

Watch out, concentration risk ahead

BNP Paribas Asset Management’s Talking Heads podcast offers in-depth insights on the topics that really matter to investors. Each week, our investment experts join Daniel Morris, Chief Market Strategist, to analyse the market through the lens of sustainability. 

For more insights, visit Viewpoint: https://viewpoint.bnpparibas-am.com/ 
Download the Viewpoint app: https://onelink.to/tpxq34  
Follow us on LinkedIn: https://bnpp.lk/am   
Hosted by Ausha. See ausha.co/privacy-policy for more information.

BNP Paribas Asset Management’s Talking Heads podcast offers in-depth insights on the topics that really matter to investors. Each week, our investment experts join Daniel Morris, Chief Market Strategist, to analyse the market through the lens of sustainability. 
 
For more insights, visit Viewpoint: <a href="https://viewpoint.bnpparibas-am.com/" title="https://viewpoint.bnpparibas-am.com/">https://viewpoint.bnpparibas-am.com/</a> 
Download the Viewpoint app: <a href="https://onelink.to/tpxq34" title="https://onelink.to/tpxq34">https://onelink.to/tpxq34</a>  
Follow us on LinkedIn: <a href="https://bnpp.lk/am" title="https://bnpp.lk/am">https://bnpp.lk/am</a>    Hosted by Ausha. See <a href="https://ausha.co/privacy-policy">ausha.co/privacy-policy</a> for more information.