This spike in the price of shares of technical giants leads to two fears. One of them is whether investors have inflated the speculative bubble. Five companies worth $5.6 trillion account for almost one-fifth of the S&P 500 index. Recall that 20 years ago, the market was so concentrated before the collapse, which triggered a massive recession. The second, opposite side is that investors may be right. Huge estimates from major IT companies suggest that their profits will double or so in the next decade, causing much greater economic turmoil in rich countries and an alarming concentration of economic and political power.
This spike in the price of shares of technical giants leads to two fears. One of them is whether investors have inflated the speculative bubble. Five companies worth $5.6 trillion account for almost one-fifth of the S&P 500 index. Recall that 20 years ago, the market was so concentrated before the collapse, which triggered a massive recession. The second, opposite side is that investors may be right. Huge estimates from major IT companies suggest that their profits will double or so in the next decade, causing much greater economic turmoil in rich countries and an alarming concentration of economic and political power.
Comments powered by CComment