The S&P 500 Is Only 50 Stocks. 70% of the Index Is in a Correction. Did the Sell-Off Already Happen?

Beneath a resilient S&P 500, most stocks are already in correction while AI capex shifts to debt financing, raising leverage risk.

• Effective S&P 500 is 50 stocks: Nardini says concentration means the index's effective number of holdings is only about 50, so S&P investors don't get the diversification across sectors they assume.
• 70% of the index is de-risking already: While headline indexes sit near highs, most constituents are well below 50-day moving averages and in meaningful drawdowns (15-20%), masked by mega-cap weight.

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