The Hidden Costs of Reducing the S&P 500 Index Concentration Risk: Diversification’s Double-Edged Sword
Former JPMorgan Chase Global Chief Economist (Ph.D. in Economics) & Current BrightQuery Chief Economist
Special Thanks to Harri P. on Unsplash.com
Some investors have expressed concerns that the S&P 500 Index exposes them to the Top 10 or Magnificent-7 risk. If concentration risk is your worst nightmare, viable strategies are available to mitigate such risks. Although the Magnificent-7 stocks dominate the technology sector, with companies such as Apple, M…
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