S&P 500 Relies on Ponzi Economics, in 2024 About a Third of It is a Handful of Massively Overvalued Companies
Dangerous reliance on false assumptions and opportunistic con jobs
THIS analysis from last year is an important reminder that the "S&P 500" might as well be renamed "S&P 5" because 5 companies have the lion's share of the total "value", and the 'top' 50 already cover the vast majority of it. Calling it "500" is a tad misleading and many companies valued at billions if not trillions of dollars are worth perhaps 10 times less than "the market" claims. Here we go:
That's 2023. It got more obscene this year.
It was not like this 24 years ago (2000) or 51 years ago (1973), but it was not much better. Just over a decade ago IBM was valued higher than Microsoft and unless we believe Microsoft became 15+ times more "valuable" when Windows "market share" was falling, we're likely looking at an elaborate pyramid scheme. Only few people will benefit from this (the insiders). █