(from 2 years ago)
(from this week)
While this topic makes for great clickbait it’s just another variation of the “this time is different” argument. Concentration is not new or different. Vilfredo Pareto noted this a long time ago.
https://www.masterclass.com/articles/pareto-principle-explained
Right or wrong….If an index is “too concentrated” how about we just keep cash on the sidelines. Even better, let’s change the amount on the sidelines proportional to the “overconcentration”.