Driving the Stock Market

In this week’s Barron’s, Mike Santoli asks:

“How is it possible, though, that Citigroup (ticker: C), Fannie Mae (FNM), Freddie Mac (FRE), Bank of America (BAC) and AIG (AIG) — with a combined market value near $200 billion-could “drive” a stock market worth more than $10 trillion and that has added about $1 trillion in value this month, as measured by the Wilshire 5000?”

A friend who runs a hedge fund suggests a better query:

“I think another question to consider might be, How is it possible that those 5 stocks have a combined $200 billion market cap?”

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