The Entire Market is Being Pulled by 5 Stocks the Past 3 years.

I knew that the "big 5" were holding the market higher in this rebound. What I didn't realized is they have been pulling the market higher the past 3 years.

Without them - the stock market is basically flat since 2017.

The big 5 is: Apple, Microsoft, Facebook, Alphabet (Google) and Amazon.

The Big 5 Takeover

The Wilshire 5000 is the most solid broad gauge of the US stock market in my opinion. What we see in this chart is that the big 5 make up 20% of this index's market cap. This is double the 10% just 3 years ago!

Market Cap Growth (stock performance)

This chart is even more telling. When excluding the big 5, market cap is flat over the past 3 years for the Whilshire index.

Granted, market cap can get a little skewed to track with share buy backs and such, but it still gives us a good idea of the theme here.

Will the might fall?

What is that saying? "Oh how the might have fallen."

It has been some time since any of these stocks went through a rough patch. At some point everything has a cold streak. It will be interesting to see how the market reacts to any kind of downturn lasting more than a few days from these names.

Posted Using LeoFinance