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Big Three versus the Small 2000

David_Snowball
edited July 2018 in Off-Topic
Remember when "the Big Three" referred to Ford, Chrysler and GM? Today, their combined market cap ($130 billion) is just below Netflix's.

As someone who worries about the increasing concentration of large index funds, such as the S&P 500, on just a handful of stocks, I was struck by a note in a research report released today by Leuthold Group:

"Remember, though, that the market cap of the Russell 2000 is now roughly equal to the combined capitalization of Apple, Amazon, and Google."

That sort of suggests that a serious stumble by any of those three (Vizzini, "that would be absolutely, totally and in all other ways inconceivable") would have surprisingly powerful effects.

Curious, as ever,

David

Comments

  • CrashCrash
    edited July 2018
    You've come a long way, baby.

  • LewisBraham
    edited July 2018
    It reminds me of Cisco, Intel and Microsoft back in 2000. I remember looking at Cisco back then and thinking if this stock ever misses an earning estimate, watch out! Bellwether stocks are always like that though, particularly as bubbles begin to peak. Worth a read:
    https://seekingalpha.com/article/4178724-bigger-tech-bubble-today-one-2000-question-unicorns
  • Tarwheel
    The early 2000s were a great period for small cap and value stocks, if history repeats, which it sometimes does.
  • David_Snowball
    A wit once noted "history does not repeat itself ... but it does rhyme!"
  • AnnaAnna
    @David_Snowball Several opposites like "break and make" rhyme. Maybe timing is key.
  • VintageFreakVintageFreak
    edited July 2018
    Timing is ALWAYS key. The problem is the words "Market Timing" were usurped to ...
    - describe the unsavory tactic of front-running trades
    - describe the situation where day/week traders are ruining their portfolios
    - describe investors who are always to blame for selling funds at their bottom
    - etc. etc. etc.

    Timing has made more money than Genius. And those that claim Genius have mostly benefited from Timing.
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