The book, Exponential Wealth: Centuries of Stock and Bond Returns, provides context on the concentration issue in US stocks. The adjusted HHI index places us at historic levels. The smaller-cap market is being squeezed. Is this good for investors? One could argue that any index has less diversification, and that market power will be more concentrated in these larger firms. Is there a need for more vigorous antitrust action? This tool of government has not been used, yet it may help restore more balance within the markets.
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