Funding invests in companies related to artificial intelligence on a scale that has been unprecedented for years. Startups outside the AI sector are having problem raising capital present due to the fact that most of the money goes to 1 industry. Despite the dynamic growth of S&P 500 over the past weeks, this index has been increasing mainly thanks to respective of the largest technology companies. In this text we collected graphs that best show what drives the current host, where cracks begin and why inflation may not yet say the last word.
Hossa individual companies. The remainder of you stand still.
S&P 500 grows, moods are good, and money flows into the marketplace through a wide stream. The problem is, this hossa has a very limited width. Most of the companies included in the index do not participate in the growth and do all the work ]]>several of the largest technology companies]]>. And that's what you see best on the first chart.
The black line shows the ratio of the S&P 500 equivalent version (where each company has the same share in the index) to the capitalisation weighted version (i.e. the standard S&P500 as we know it on a regular basis). simply put, the illustration shows how the average company in the index is doing compared to the full market. The blue dotted line is simply a long-term trend, while the gold line in the bottom panel shows a deviation from this trend in percentages.
Since about 2022, the average company with S&P 500 has systematically lost compared to the index as a whole. By 2026 this deviation is already about -20%. This is simply a level not seen since the 2000 technological bubble. In another words, if you bought an ETF on S&P 500, you make money. If you bought a random company from this index, you're most likely falling behind. It's not a bessa. It's a hossa that happens without most markets.
Institutions know what they buy – and they buy the same
Institutional investor positioning confirms this picture. Deutsche Bank Asset Allocation regularly measures how much the funds are predominately or underdeveloped in various asset classes. The score has been comparative to past since 2010: the higher, the more the "compressed" position.
The graph shows 2 lines. Blue is positioning in full shares, which is moderate, without alarm signals. Green is the positioning in the largest technology companies. This line went up in May 2026 and is marked with a red frame as an anomaly. Interestingly, in November 2025 the large Tech advantage was even greater. The funds were partially sold out, but returned to the area of historical maxims. specified congestion has historically frequently preceded corrections, not due to the fact that the marketplace has to fall, but due to the fact that there are not many fresh buyers with specified a unilateral arrangement. It is adequate that any funds will start selling out the shares of technology companies, and the sellers will shortly not find the willing at the current prices. organization investors are present more favoured in large Tech than in almost any another minute in the past 16 years. The wide marketplace is not yet crowded. large Tech is.
Google dissipates actions
For the past decade, Google, or actually its parent company Alphabet, has regularly purchased its own shares from the market. Focus your own shares, which is ]]>Buyback, it's an operation where a company buys its papers]]>, reducing their number in circulation and raising the profit for each remaining share. For a shareholder, it is simply a form of withdrawal: alternatively of dividend, it gets a higher valuation.
The blue posts on the above illustration represent the scale of the acquisition of shares made in a given year by Alphabet. The poles grow from almost zero in 2015 to around US$60 billion per year from 2022 to 2024. In 2025 the buying-in value somewhat decreased to about 46 billion USD. In 2026, the post is red and descends deep below zero, to about -80 billion USD.
A negative value in this case means that the Alphabet not only stopped buying stock but began issuing it, i.e. selling fresh papers to marketplace participants. It's a 180-degree reversal of politics in fresh years. The money that previously went to shareholders now goes to data centers and AI infrastructure.
It is worth adding that Berkshire Hathaway under fresh management, ]]>After Warren Buffett left]]>, to cover about 10% of the share in Alphabet. It's an unobvious decision for a company that has been bypassing technology companies for decades with a broad arch and a signal that something in large Tech's perception of the largest organization investors is changing.
Continue reading: ]]>Everybody buys large Tech. Nobody asks about the price – June 2026 on the charts]]>
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Author: ]]>Independent Trader Team]]>
