4 charts that expose market concentration risks

Markets are more concentrated than they have been in decades, with a small group of AI-linked companies driving an outsized share of returns and index performance. That has created opportunity for investors who own the winners, but it also raises the risk that broad market funds may be less diversified than they appear.

The same pattern is visible globally, and it now reaches beyond stocks into the real economy and corporate credit markets. AI spending is supporting U.S. growth, yet that also means earnings and bond markets could become more vulnerable if investment slows.

For advisors and investors, the message is not to avoid AI entirely, but to stay balanced. A wider mix of sectors, geographies and asset classes can help reduce unintended exposure while still participating in long-term growth themes.