Market concentration is at record highs, euphoria is peaking, and fundamentals are collapsing. This bubble will burst—are you prepared?

The S&P 500

In July 2025, the top 10 companies in the S&P 500 reached a record concentration of 40% of the index.

• In the dot-com bubble, that figure was just 26%.
• The only other time in history we saw concentration this extreme? 1929, just before the Great Depression.

When so much wealth hinges on so few stocks, the market becomes dangerously brittle. If even one of these giants stumbles, the entire index shakes. In 2000, that meant a 70% collapse in the NASDAQ. This time, the fallout could be worse.

Irrational Exuberance Returns

Former Fed Chair Alan Greenspan coined the phrase irrational exuberance in 1996—warning about asset prices detached from reality. Four years later, the dot-com crash proved him right.

Today, the Barclays Equity Euphoria Indicator—which averages around 7%—is at 10.7%. Translation: the market is in full-blown mania mode.

• Hot narratives are driving prices, not profits.
• Fundamentals have “taken a backseat” as stocks trade like lottery tickets.
• Smart money is quietly exiting while retail investors chase the hype.

The Profit Mirage

Here’s the real red flag: in 2025, sales are up—but profits are falling. This divergence means margins are collapsing. Companies are eating losses to keep the illusion of growth alive. That can’t last forever.

• Eventually, costs will hit consumers in the form of higher prices—fueling more inflation.
• Or businesses will fold, triggering layoffs, defaults, and market panic.

The same “this time is different” mindset surrounded the internet boom.

The Fuse Is Already Lit

Our economy is built on:

• Decades of easy money and artificially low interest rates
• Overprinted dollars eroding purchasing power
• Manipulated job numbers masking weakness
• Slowing consumer spending and weak GDP outlook

It won’t take a major crisis to break this bubble—one bad headline could do it. And when liquidity dries up, no amount of Fed rate cuts or money printing will stop a freefall.

Gold & Silver: The Smart Money’s Escape Hatch

While the public piles into hype stocks, the smart money is getting out.

• Warren Buffett, Ray Dalio, and global central banks are loading up on gold.
• Central bank gold purchases are at record highs.
• Insider selling is surging—those in the know are quietly exiting before the crash.

Physical gold and silver are the insurance policies you hold outside the system—the same tangible assets that have preserved wealth through every currency reset, inflation spike, and market collapse in history.

Every bubble pops.

This one will be no different—except bigger, faster, and more destructive. The top-heavy market, euphoric sentiment, and collapsing fundamentals make the outcome inevitable. The only question is: will you be prepared before it happens?

About ITM Trading

ITM Trading has over 28 years of experience helping clients safeguard their wealth through personalized strategies built on physical gold and silver. Our team of experts delivers research-backed guidance tailored to today’s economic threats.

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