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Evolution of Market Mix

In 1900, Railroads as a sector contributed 63% and 50% to the US and UK stock market capitalization. 

The sector is now nonexistent in both countries' public equity markets. Now, the information & technology sector dominates the US market, and industrials and health in the UK. Many of the sectors that exist and dominate today were nonexistent. 

According to the UBS report, of the US firms listed in 1900, some 80.0% of their value was in industries that are small or extinct today. In UK, the figure is 65.0%. 

Meanwhile, some sectors that existed in 1900 are still as relevant as they were 120+ years ago. Banking, insurance, food, beverage, tobacco, and utilities sectors still represent a significant portion of the market. 

Some industries decline, some emerge and thrive, and some survive and matter longer than others. The market concentration is an indicator of which sectors are driving the economy at a given point in time. 

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