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Just 10 Stocks Accounting For Half The August Gains Has Led To “Record Market Fragility”

We have previously shown that the S&P500 is rapidly becoming the S&P5, with just the 5 FAAMG names now accounting for a record 23% of the S&P’s market cap, well above the concentration observed during the peak of the dot com bubble when a similar figure only hit 18% (for MSFT, CSCO, GE, INTC and WMT).

Which is why it won’t come as much of a surprise that according to SBank of America, just 10 S&P stocks (shown below), accounted for more than half of the market’s 7.2% return in August.

What may come as a surprise however, is BofA’s breakdown of who the buyers were since the March lows. In analyzing the positioning of investors via sentiment & flows Z-scores, the bank found that equity buyers in March were mostly “old retail” (high net worth), in April it was the long onlies & hedge funds, while the period of June through August was dominated by “new retail” investors, i.e. Robinhood-type daytraders, although August was a truly history month combining a “vortex of concentration” + new retail + optionality in a historic blow-off top.

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