High U.S. stock market valuations suggest lower returns in the next decade.
Geopolitical concerns and AI are major factors to consider.
AI's importance is compared to the internet, with potential for both a boom and disruption like the internet's impact on Blockbuster.
The next 5-10 years present significant upside and downside risks due to AI's transformative potential.
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The top 10 stocks in the S&P 500 account for an outsized share of the index’s market cap and of its stellar 2024 performance. Goldman Sachs Research’s David Kostin, chief US equity strategist, and Owen Lamont, senior vice president and portfolio manager at Acadian Asset Management LLC, discuss whether investor concerns over today’s high US equity market concentration are warranted. This episode explores the latest Top of Mind report, Market Concentration: How Big a Worry?