James Smigiel on market concentration
From Market concentration is creating fragility investors can’t ignore, says SEI's Jim Smigiel · · CNBC Television
“The big theme is it's not about the volatility, it's about the fragility. As markets get increasingly and increasingly concentrated — whether it's Nvidia approaching 8% of the S&P 500, whether it's tech at 35%, whether it's an AI theme which depending on how you calculate it is about 43% market cap and accounts for about 75% of the price return since ChatGPT came out — that is a very concentrated market and that adds fragility that investors, particularly passive investors, need to be aware of.”
On , James Smigiel, Chief Investment Officer at SEI INVESTMENTS CO, spoke about market concentration during Market concentration is creating fragility investors can’t ignore, says SEI's Jim Smigiel on CNBC Television.
About James Smigiel
James Smigiel, chief investment officer at SEI, has been publicly discussing market concentration and portfolio strategy. In October 2025, he stated that the market is exhibiting "fragility" rather than volatility, citing the concentration of the S&P 500 in a small number of stocks, such as Nvidia approaching 8% of the index. He said that passive investors in particular should be aware of this risk and that diversification—by global markets, capitalization, and factor—is the appropriate response)Skip. Smigiel also expressed a bullish view on gold, calling it a hedge for geopolitical concerns and noting that central banks remain under-allocated to the metal. In August 2025, Smigiel said the market had shown "euphoria around almost a certainty for a cut" from the Federal Reserve, but that expectations had since moderated. He described gold as a hedge against a weakening U.S. dollar and the federal debt situation. In earlier appearances, Smigiel expressed caution on equities in the face of higher yields and a hawkish Fed, favoring value-oriented sectors like materials and industrials. He has also argued that the "Magnificent Seven" stocks are over-concentrated and that active management