If That Was A Bubble, What’s This?
Just three stocks, Apple (AAPL), Amazon (AMZN), and Microsoft (MSFT), make up more than 16% of the S&P 500 Index and over a third of the Nasdaq 100 Index. Together they are now valued at nearly $5 trillion. That’s larger than the entire economy of Germany and roughly the size of the Japanese economy. What is really most astounding, though, is the aggregate valuation of these three behemoths relative to their free cash flow. Only at the peak of the Dotcom Mania have we see anything like it – which begs the question: ‘If that was a bubble, what’s this?’
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Disclosure: Information in “The Felder Report” (TFR), including all the information on the Felder Report website, comes from independent sources believed reliable but accuracy is not ...
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It's 20 years later. The load of top companies in the S and P is natural progression and selection, especially since their goal is not to try to model it after the economy in any way such as Dow Jones Industrial tried to do. This way we can see as money amasses into the survivors which tend to be the ultra large stocks that grow through natural selection, takeovers, and monopolistic behaviors.