Marina Lyubimova
⬤ The concentration trade has become one of the most defining themes in modern markets, with Big Tech—especially Nvidia—dominating through AI adoption and technological breakthroughs. Nvidia's stock surge exemplifies how a handful of companies now shape entire market cycles.
⬤ Past market transitions reveal a consistent pattern: one or two companies maintain their grip longer than expected before eventual plateau. General Motors ruled during the automobile revolution. Microsoft dominated the post-dot-com era. Exxon Mobil led after the 2000s commodity boom. Each remained entrenched for decades, then performance stalled after peak dominance.
⬤ Here's the crucial insight: spotting dominant players is straightforward. Timing the regime change? That's where fortunes are won or lost. Nvidia currently owns the AI-driven future, but whether this continues long-term remains uncertain. Peak dominance often triggers prolonged underperformance once markets shift—exactly what happened to previous tech and commodity leaders.
Marina Lyubimova
