Millions of American investors own at least 1 of these 3 stocks without knowing it — and they could help bring about the next big downturn.
There’s a hidden threat buried within today’s stock market.
But very few American investors have taken note.
Here’s why virtually no one’s paying attention: we’re right in the thick of a huge, nearly decade-long stock market rally.
Right now, the market’s bouncing around all-time highs.
It may hit even higher highs in the coming weeks or months.
And when you’re sitting on big profits, sometimes it’s hard to identify warning signs.
But, as history shows – and as you’ll see below – when stocks have gone up a lot for a long time, they often go down.
And sometimes they go down quickly.
That’s why renowned economic analyst and ex-Congressional page Daniel Denning has identified one concrete event buried in today’s stock market.
This very event occurred right before the tech wreck of 2000, when the Nasdaq dropped a total of 78%.
Just 8 years later, the event happened a second time.
Shortly after, the subprime mortgage bubble burst and the S&P 500 shot down 57%.
And today, the same event is popping up in the market again, focused within three specific “Take Caution” stocks.
But just what is this critical event in the stock market?
It’s when the vast majority of profits get concentrated in one single sector of the stock market.
As you might imagine, before the dot-com bubble burst, that extreme concentration was in internet stocks.
And, right before the subprime mortgage bubble burst, the concentration was in financial stocks.
To sum up: the two biggest stock market declines of the past 90 years followed right after a huge portion of overall stock performance came from one single sector of the market.
As you probably figured out by now, the sector that undergoing similarly heavy concentration in today’s stock market is tech stocks.
Here are some quick stats to show you the full picture of just how much this small handful of tech stocks dominates the bull market:
• Just 4 tech stocks have been responsible for 84% of the S&P’s total upside in 2018…
• One single tech stock alone accounts for ONE-THIRD of the S&P’s return…
• This has led to technology stocks growing to become 26% of the weighing in the S&P 500 index…
• This small group of tech stocks has risen an astounding 617% since the end of the financial crisis…
• That insane performance makes this the 3rd biggest bubble in stock market history, set to become the biggest bubble of all time in the next few months!
Dan Denning recently revealed the three biggest stocks that account for this huge concentration.
He calls them “Take Caution” stocks because you ought to take caution if you own them.
But here’s the real kicker about these three “Take Caution” stocks: millions of investors own them without knowing it!
That’s because of the proliferation of cheap, profitable index funds.
Let me explain.
Over the past decade, ETFs and passively managed funds have grown at an astronomical rate.
• Since 2007, passive funds have tripled in size, reaching a total of $1.9 trillion in assets.
• In addition to that, index-related ETFs have grown to $1.7 trillion.
So that’s an astounding total of $3.6 trillion held in these investment vehicles, which amounts to 42% of all money in US stocks.
Looked at another way, $3.6 trillion amounts to 19% of America’s total GDP.
So it’s an enormous amount of money.
But most folks who hold these funds – and a lot of them have made a lot of money with them – simply don’t know what individual stocks the funds hold.
Please consider this: you might miss out on the urgent briefing that reveals these three “Take Caution” stocks because Dan will only reveal all three to members of his monthly financial research service called The Bill Bonner Letter.
The first “Take Caution” stock is America’s largest online retailer.
First of all, if you own shares in this company outright — directly in your portfolio and not through a fund – watch it closely because, as we’ve shown above, it’s gone up so much so quickly that there’s risk of a pullback.
So if the stock starts to go down, pay attention in case you want to sell it to protect your gains.
Second, it’s in your interest to quickly determine if you own this company without knowing you own it.
Here’s why: the stock is a large component of many index funds, ETFs, mutual funds and pension funds.
So millions of Americans are directly exposed without knowing they’re directly exposed.
For details on how to join The Bill Bonner Letter – and how to learn the names of the other two stocks – simply enter your e-mail in the box below.
Don’t make excuses or put it off – because you need to be armed with this critical information in case the market starts to have a downturn.
Please note: Investing in the stock market can involve the risk of taking losses. That’s why The Bill Bonner Letter has published this new briefing detailing these 3 “Take Caution” stocks…