Catherine Rampell @crampell.bsky.social · May 9 The share of S&P 500 profits captured by the 10 largest companies has doubled since 1996. The S&P 500 is not a diversified index anymore, it is dominated by a small number of extraordinarily profitable tech companies. From Torsten Slok www.apollo.com/wealth/the-d...
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Fuck the poor. Feed the war. Happy markets = happy billionaires.
That pay no taxes
A few of the "Mag 7" have stalled or canceled over half of the datacenters planned for 2026. Microsoft's (OpenAI) $500b Stargate has stalled; Meta's halted a $3.5b project in Menlo Park—something seems amiss here. And now you can download LLMs to your desktop. That's going to kill AI subscriptions.
But as long as everyone keeps buying tulips we're set.
By market capitalization, the top 10 companies represent approximately 40 percent of the total.
FOR NOW. What happens when they actually need to finance their trillions of dollars of AI investment with actual cash from operations? To say nothing of a global movement to decouple business and government from US tech exposure...
If and when those few companies fail, the entire S&P will crash. We had the Dot Com crash. Another crash is not a pipe dream!
Most of which are deep in the ai bubble passing 100 billion ious to each other
The graph would be more instructive if it was every year and not every 10 years. Yes, 2026 is abnormally high, but 2006 being as high as it was suggests maybe outlier years (bubbles) happen?
Genuinely curious: does your data-crunching on this matter suggest broad index funds are largely shielded from top-heaviness? Mid-cap and small-cap indexes aren't loaded with the S&P top-10 by definition. I understand you're not giving financial advice–I'm curious about the data part.