Bridgewater Research: The Life Cycle of Market Leaders

Bridgewater released a research report reviewing the rise and fall of U.S. stock market leaders over the past 120 years. The 10 largest U.S. companies by market value currently account for nearly one-third of total U.S. stock market capitalization, the highest concentration in decades. The study shows that about half of market leaders underperform the market and fall out of the top 15 by market value within the next one to two decades. Over the long term, almost all leaders are eventually replaced by new entrants.