The propulsion of money being funneled into the top five mega caps ($200B+) continues to astound the market with lopsided parity among major indexes. For example, the total market cap of all the companies in the entire S&P 500 on December 22 was $40.73T with a sizable chunk of that represented by just five companies:
Apple (APPL) $2.95T
Microsoft (MSFT) $2.47T
Alphabet (GOOG) $1.92T
Amazon (AMZN) $1.7T
Tesla (TSLA) $1.15T
Total market cap of the S&P 500’s top five: $10.19T
25% of ALL the equity in the S&P 500 is in five companies (1% of the index)
Will there be a correction at some point? We shall see, but signs do indicate we’re firmly in a mega cap bubble and it would be wise to pay attention to larger macro shifts to get out ahead of any sell offs.
Meanwhile excellent future growth companies are being ignored:
Perion (PERI) $1B
PubMatic (PUBM) $1.6B
Magnite (MGNI) $2.2B
fuboTV (FUBO) $2.5B
DoubleVerify (DV) $4.9B
“If the crisis has a single lesson, it is that the too-big-to-fail problem must be solved.” – Ben Bernanke in 2010