Wall Street record dividends
US stock market, record for stock market capitalisation
51 trillion dollars is the record capitalization of the US stock market, just achieved according to the Bloomberg index. The figure, already impressive in itself, is even more gigantic because it is equivalent to 130% of the US GDP, compared to 95% of the world total and just 60% in the Eurozone. There seem to be three main reasons for this super effervescence, considered by some to be disproportionate. The first is certainly the developing trend of US GDP supported by consumption, employment, growing productivity and exports. An economy (the Bideneconomics) that, surprisingly, has shown resilience to the pandemic and high rates and has removed the specter of recession. The second is the differential development of the capital market. The third, perhaps the most significant, is the strong concentration (in this value existing only in this market) of technology companies and in particular of the “seven sisters”: Apple, Microsoft, Amazon, Nvidia, Tesla, Meta and Alphabet. They alone are capitalized at something like 12.5 trillion dollars. A figure that represents 11% of the total stock market capitalization of the planet and 50% of the $25 trillion market value of the total number of companies listed on Nasdaq.
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US stock exchange, the gigantic weight of the 7 Big Techs
And it is precisely because of this “gigantic” weight that rules are being sought to reduce these seven Bigs. Their capitalizations are impressive even if you compare them with some of the heavyweights of about 15/20 years ago such as banks, oil giants or technology companies of the caliber of General Electric, AT&T, IBM or General Motors. The astronomical capitalizations of Tesla (664 billion), Meta (989 billion), Alphabet (1.85 billion), Apple (3.02 billion), Amazon (1.61 billion), Microsoft (2.96 billion) and Nvidia ( 1.48 billion) also arise from their ability to move globally with not many products and lower investments in fixed capital. Numbers and earnings that were unimaginable until a few years ago. In fact, such a small group of companies had never achieved such high capitalization and earnings. So, sparkles and champagne for the US stock market. The atmosphere is different on the other side of the Atlantic where there are almost no listed technology companies of significant size. Among the few, SAP stands out, capitalizing 200,000 million euros and earning around 4,000 million or ASML (capitalized 308,000 million euros) and profits of 8,200 million. In conclusion there is nothing that can be done, Europe seems to have fallen behind in the technological sector and the game now seems lost in favor of the stars and stripes market.
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