Excess Returns · Tuesday, July 7, 2026
Matt Zens suggests that market concentration doesn't inherently mean the market will perform worse, but rather that diversification becomes even more valuable. He advises against starting investment analysis with a 'bubble' narrative, instead emphasizing the information conveyed by market prices.
“And so, right now, what is the market telling you with the prices? It's saying there are a handful of companies that are extremely valuable.”
“for us, we think about market concentration, we just think it really means there's a really an extra value on being diversified.”
“But it also doesn't mean that just because markets are concentrated in a handful of names, that means the market is going to do worse.”