The Incredible Shrinking Stock Market: Is Private Equity Undermining America’s Markets?

Markets & Economy

The Incredible Shrinking Stock Market: Is Private Equity Undermining America’s Markets?

by Alex Daley, Founder & Managing Director of WorthNet

The U.S. stock market isn’t what it used to be.

Back in the mid-1990s, investors could choose from nearly 8,000 public companies.

Today? Fewer than 3,400 remain.

That’s right: Supply has been cut in half; yet trillions of new investment dollars are still chasing returns. That imbalance drives prices higher – but it also bends the very structure of the market:

In this new conversation, veteran investor Chuck Carlson – CEO of our partner adviser Horizon Investment Services and publisher of Dow Theory Forecast, one of the longest-standing investment newsletters in the world, since 1946 – pulls back the curtain on what’s really happening behind the numbers. He explains:

Why thousands of companies have disappeared from the market – and why many never go public at all.
How small-cap indexes are filling up with weaker names by default.
Why ETFs now outnumber stocks… and what that means for where your dollars actually flow.
And why traditional valuation yardsticks may be giving investors false signals.

Carlson even shares his take on the push to put private equity in 401(k)s – and the risks most people overlook.

At WorthNet, our mission is to surface thoughtful conversations like this – insights you won’t necessarily hear in the mainstream – and connect investors with experienced partner advisers who can help put these lessons into practice.

Watch the full video above, then explore how WorthNet can help you find the right partner to navigate a market that’s changing before our eyes.

Charles B. Carlson, CFA

CEO & Portfolio Manager of Horizon Investment Services

Investment Visionary, Seasoned Asset Allocator

Charles B. Carlson is a veteran investment adviser with over 25 years of experience in retirement planning, asset allocation, and portfolio management. He is CEO of Horizon Investment Services (CRD #110642), a proud member of the WorthNet partner adviser network.

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Last Revised: October 3, 2025

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Horizon Disclosures: Horizon Investment Services, LLC is a registered investment adviser with the United States Securities and Exchange Commission in accordance with the Investment Advisers Act of 1940. The firm manages equity, mutual fund, income, balanced, and ETF portfolios for U.S. investors. Registration with the SEC does not imply a certain level of skill or training. Horizon Investment Services claims compliance with the Global Investment Performance Standards (GIPS^®). To receive Horizon’s GIPS-compliant performance information, contact Tom Hathoot at 1-219-852-3215 or write Horizon Investment Services, 7412 Calumet Ave., Hammond, IN 46324, or email [email protected]. The Quadrix^® stock-rating system is a proprietary product used to support investment decision-making, wholly owned by Horizon Publishing Company, Horizon Investment Services’ sister company. Horizon Investment Services has contracted with Horizon Publishing Company to use the Quadrix stock-rating system for its stock-screening processes. From time-to-time, Horizon Publishing Company may change the weightings of the various metrics that go into computing Quadrix scores. GIPS^® is a registered trademark of the CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. CFA^®: Chartered Financial Analyst^®. The Chartered Financial Analyst designation is a professional designation awarded by the CFA Institute. A CFA Program candidate must pass three exams in the following areas: portfolio management, accounting, ethics, money management, and security analysis. CFA charter holders are subject to rigorous ethics rules. CFA^® and Chartered Financial Analyst^® are registered trademarks owned by CFA Institute. As a fiduciary, Horizon is legally and ethically bound to act in the best interests of its clients. An investment in this strategy involves the risk of loss. Investment return and principal value will fluctuate so that the investment, when redeemed, may be worth more or less than the original investment. Past performance is no guarantee of future results. No formula or other device being offered can, in and of itself, be used to determine which securities to buy or sell. Horizon Investment Services’ clients and/or employees may hold positions in the stocks suggested in this presentation.