“5 powerful tech companies now make up 18% of the stock market…”
February 6, 2020
“We are here to say that yes, there is life outside of investing in Apple, Microsoft, Amazon, Google and Facebook. Unfortunately, most investors don’t agree — and it could end badly for them at some point.
Those five powerful tech companies now comprise a hearty 18% of the S&P 500’s market cap, points out Goldman Sachs strategist David Kostin. That has put the S&P 500 in an unwelcome category: the dot com bubble. In 2000, Kostin notes, Microsoft, Cisco, General Electric, Intel and ExxonMobil also made up 18% of the S&P 500’s market cap. Obviously that didn’t end too well back in 2000 for the simplest of reasons…”
Just keep in mind these mega companies can only grow so much. At some point they will be unable to grow anymore. That’s just the reality of the situation.