Will These Giants Stay Evergreen?

Chart of the Week: Will These Giants Stay Evergreen?

The big just keep getting mind-bogglingly bigger. The six largest companies in the U.S.—Apple, Microsoft, Alphabet (Google), Amazon, Tesla and Facebook (now Meta)—make up more than a quarter of the stock market’s size. Since the low point of the pandemic market shock in March 2020, these companies have seen their collective capitalization go from a little over $4 trillion to more than $10 trillion. (Market capitalization, or “market cap” for short, is the value of all publicly traded shares of a company.) The surge has been a gift to tech-centric investors, but keep in mind that trees, even Christmas trees, don’t grow to the sky.

Note: Chart shows market capitalization for each company listed on 3/23/2020 and 12/21/2021 in billions of dollars. Source: Morningstar.

This material is distributed for informational purposes only. The ideas and opinions contained herein  should not be viewed as recommendations or personal investment advice. Data and statistics contained in this report are obtained from what we believe to be reliable sources; however, their accuracy, completeness or reliability cannot be guaranteed.

Our statements and opinions are subject to change without notice. You may request a free copy of the firm’s Form ADV Part 2, which describes, among other items, risk factors, strategies, affiliations, services offered and fees charged.

Past performance is not an indication of future returns. Tax, legal and insurance information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice, or as advice on whether to buy or surrender any insurance products. Personalized tax advice and tax return preparation is available through a separate, written engagement agreement with Adviser Investments Tax Solutions. We do not provide legal advice, nor sell insurance products. Always consult a licensed attorney, tax professional, or licensed insurance professional regarding your specific legal or tax situation, or insurance needs.

For a summary of Adviser Investments’ advisory services and fiduciary responsibilities to our clients, please review our Form CRS here.

© 2021 Adviser Investments, LLC. All Rights Reserved.

Tags:

Chart of the WeekJeff DeMasostocks