[Analyst: Insufficient Breadth in U.S. Stock Market Rally Is Not a New Issue, 'Seven Giants' Are Backed by Hundreds of Companies] BlockBeats News, October 9 — Bloomberg ETF analyst Eric Balchunas published an article stating that recent concerns about the insufficient breadth of the U.S. stock market rally have been repeatedly mentioned, but this phenomenon does not necessarily mean investors should worry. He cited market data from the past 100 years, noting that only about 4% of stocks have created all the net wealth growth in the U.S. stock market, while roughly half of companies have underperformed U.S. Treasury bonds over the long term, indicating that stock market returns have historically been highly concentrated in a few companies. Balchunas further pointed out that the large tech companies driving the current U.S. stock market rally differ from traditional large corporations in that they have integrated vast business systems through numerous acquisitions. For example, Microsoft and Google have each acquired approximately 270 companies. Therefore, he believes investors should not interpret the market influence of these companies solely based on the name of a single publicly listed entity but should view the 'Seven Giants of U.S. Stocks' (Mag 7) as commercial ecosystems composed of hundreds of companies, even humorously referring to them as 'Mag 700.' He also mentioned that if Google's YouTube were independently listed, it could, by his estimation, rank among the top 20 companies in the S&P 500 by market capitalization. The scale and influence of these companies' operations far exceed that of a single corporate entity, which may explain why the current U.S. stock indices, despite being driven by a few large tech stocks, are still supported by a broad base of corporate assets and business activities. [Original Link]