US Equity Market Analysis 2024: Sector, Size, and Value Premium Divergence
Analysis of 2024 US equity market returns reveals highly concentrated gains with the Mag Seven companies accounting for nearly all market cap increases, while the traditional small cap premium has reversed into a large cap premium over the past 50+ years. Performance variations across sectors, market capitalizations, and valuation deciles demonstrate that market-wide gains mask significant disparities in underlying equity segment performance.
Metrics in this report
15.8$ trillion
total
10-year market cap increase for Mag Seven companies
5.6$ trillion
total
Annual market cap change for Apple, Amazon, Meta, Alphabet, Microsoft, Nvidia, Tesla
40%
proportion
Mag Seven as percentage of all US stock market cap increase 2014-2024
-4.0 to -4.5%
compounded annual
Last 20 years of small cap underperformance
6.69%
compounded annual
Difference in returns between lowest and highest market cap deciles
2.07%
compounded annual
Difference in returns between lowest and highest market cap deciles
3 to 5%
range
Traditional cost of equity augmentation for small companies
13.6$ trillion
total
10-year technology sector market cap increase
11.3$ trillion
total
5-year technology sector market cap increase
4.63$ trillion
total
Annual technology sector market cap increase
94%
proportion
Top 10% of stocks as percentage of total market cap increase
74%
proportion
Top 60 stocks as percentage of total market cap increase