Tech as a whole went up a lot after COVID, then down in the last year or so. This helps demonstrate how much the entire sector can change in value.
(In addition, if a ton wealth went started valuing tech stocks higher, it would take less than $1 to raise the value of them by $1. Maybe much less than $1. A great deal of global “wealth” is really just “expectations of value or future earnings”. So as expectations rise, the S&P 500 and I believe “Global Wealth” would rise as well.)
In comparison, tech stocks might be valued at like ~$6T?
According to companiesmarketcap.com, Apple, Microsoft, Google and Amazon alone are worth $6 trillion. I am not familiar with an estimate of the total market size, but I suspect it is substantially higher than $6 trillion?
Sorry—I was thinking, and should have specific, about the FAANG stocks, plus maybe NVIDIA and one or two AI-specific companies. All of tech globally is significantly larger, though I think most of these companies likely won’t substantially compete in the AI race.
How much further? And how much relative to the stock market as a whole?
The stock market as a whole could become significantly larger.
I just did a quick search:
- The total S&P 500 Market Cap is ~$33T
- Total Global Wealth is ~$460T
In comparison, FAANG tech stocks might be valued at like ~$6T?
[Edit: Changed “tech stocks” to “FAANG tech stocks”]
https://www.slickcharts.com/sp500/marketcap
https://www.credit-suisse.com/about-us/en/reports-research/global-wealth-report.html
Tech as a whole went up a lot after COVID, then down in the last year or so. This helps demonstrate how much the entire sector can change in value.
(In addition, if a ton wealth went started valuing tech stocks higher, it would take less than $1 to raise the value of them by $1. Maybe much less than $1. A great deal of global “wealth” is really just “expectations of value or future earnings”. So as expectations rise, the S&P 500 and I believe “Global Wealth” would rise as well.)
According to companiesmarketcap.com, Apple, Microsoft, Google and Amazon alone are worth $6 trillion. I am not familiar with an estimate of the total market size, but I suspect it is substantially higher than $6 trillion?
Sorry—I was thinking, and should have specific, about the FAANG stocks, plus maybe NVIDIA and one or two AI-specific companies. All of tech globally is significantly larger, though I think most of these companies likely won’t substantially compete in the AI race.