The One Chart Every S&P 500 Investor Needs to See Right Now

A recent analysis highlights that the S&P 500 has become heavily concentrated in a handful of mega‑cap tech names — dubbed the “Magnificent 7”. While these giants have powered market returns recently, the data suggest that this dominance may be a warning sign rather than a safe bet. Historically, when concentration peaks, broader‑based portfolios — especially those increasing exposure to sectors like energy, industrials and transportation — have outperformed in the following cycle. With valuations in large tech elevated, the piece argues that investors should consider maintaining some exposure to Big Tech, but shift the bulk of incremental allocations toward less crowded areas of the market to improve risk‑reward. #SP500 #MarketConcentration #TechDominance #DiversificationOpportunity #SlimScan #GrowthStocks #CANSLIM