Perhaps, or maybe the Permabulls continue to stare blindly into the biggest bubble ever, oblivious to the weirdness of a $1.7 Trillion market cap company down 3% one day, and up 16% the next day.
It's market cap is bigger than that, now 1.94 Trillion. (intraday).
But tomorrow it's likely to be bigger.😉
Why wait?
You can't make this up:
Nvidia, $NVDA, just casually added another $35 billion in market cap in after hours trading today.
In total, Nvidia has now added $312 BILLION in market cap today.
That's more than the entire market value of Goldman Sachs, Boeing and Target COMBINED.… pic.twitter.com/uRtUkICvdk
“BREAKING: Nvidia, $NVDA, adds $277 billion in market cap today marking the biggest ever single day gain in history.
This has shattered the previous $197 billion record set by Meta, $META, exactly 20 days ago by over 40%.”
—The Kobeissi Letter
At what point do you think you will come to accept that this is the 'new normal'?
The perennial prognostications about a market that is over extended, too concentrated, and out of whack with historical valuations has been going on now for over 7 years at least, if nor more. The message hasn't changed, it just gets more emphatic.
And all the while, fortunes have been made and re-made.
At what point do you think you will come to accept that this is the 'new normal'?
The perennial prognostications about a market that is over extended, too concentrated, and out of whack with historical valuations has been going on now for over 7 years at least, if nor more. The message hasn't changed, it just gets more emphatic.
And all the while, fortunes have been made and re-made.
Well that is by far the predominant view, anyhow.
A lot has changed. In terms of tech impact on the economy and business, it's like all the projections from the late 1990s is now fully coming into fruition. I would have thought it would have rolled out sooner than that, but a major wave is clearly upon us now in the last couple of years.
And of course, some significant cultural changes as well, for better or worse.
In 1970, the top 5 had TTM Net Profit Margin of 8.84%. Today it's 20.4%. Today, top 5 contribute almost 20% of S&P 500 TTM profit and almost 10% of sales. Also, today's top 5 are more capital efficient than 1970. NB; FASB wasn't est until 1973.
real GDP growing at 3% right now. We're not even coasting - we're booming.
Bob Elliott @BobEUnlimited It takes a combo of dynamics to bring recession, many of which will likely come together in the next 6m or so. 1) late cycle 2) weakening of cyclical sectors 3) monetary, fiscal and/or market tightening 4) added drag (like weak foreign demand) That combo emerging now. Thread. 7:41 AM · Aug 25, 2023 · 345.7K Views
Honestly...these vertical charts and stats like this are very worrisome. Clearly a lot of momentum money is in the market and it can leave in a moment.
Holger Zschaepitz @Schuldensuehner · 4h American Exceptionalism in one chart: #Nvidia has now also overtaken #Germany's Dax in terms of market capitalization. At just under $2tn, the chip comp, which was only founded in 1993, is now worth more than entire DAX w/it's40 comps, some of which are well >130yrs old.
In 1970, the top 5 had TTM Net Profit Margin of 8.84%. Today it's 20.4%. Today, top 5 contribute almost 20% of S&P 500 TTM profit and almost 10% of sales. Also, today's top 5 are more capital efficient than 1970. NB; FASB wasn't est until 1973.
Using some approximations and math, it seems the top 5 of 1970 contributed about 21% of the index's earnings, similar to today. At the end of 1999, the top 5 had a profit margin of 10.1%, but only contributed 9.21% of the index's earnings. Interestingly, XOM's profit margin in 1999 was 4.26%, yet Esso's in 1970 was 7.91%!
In 1970, the top 5 had TTM Net Profit Margin of 8.84%. Today it's 20.4%. Today, top 5 contribute almost 20% of S&P 500 TTM profit and almost 10% of sales. Also, today's top 5 are more capital efficient than 1970. NB; FASB wasn't est until 1973.
Using some approximations and math, it seems the top 5 of 1970 contributed about 21% of the index's earnings, similar to today. At the end of 1999, the top 5 had a profit margin of 10.1%, but only contributed 9.21% of the index's earnings. Interestingly, XOM's profit margin in 1999 was 4.26%, yet Esso's in 1970 was 7.91%!
Names from the past. Esso and Standard Oil became Exxon in 1973.
In 1970, the top 5 had TTM Net Profit Margin of 8.84%. Today it's 20.4%. Today, top 5 contribute almost 20% of S&P 500 TTM profit and almost 10% of sales. Also, today's top 5 are more capital efficient than 1970. NB; FASB wasn't est until 1973.
Using some approximations and math, it seems the top 5 of 1970 contributed about 21% of the index's earnings, similar to today. At the end of 1999, the top 5 had a profit margin of 10.1%, but only contributed 9.21% of the index's earnings. Interestingly, XOM's profit margin in 1999 was 4.26%, yet Esso's in 1970 was 7.91%!
Using some approximations and math, it seems the top 5 of 1970 contributed about 21% of the index's earnings, similar to today. At the end of 1999, the top 5 had a profit margin of 10.1%, but only contributed 9.21% of the index's earnings. Interestingly, XOM's profit margin in 1999 was 4.26%, yet Esso's in 1970 was 7.91%!
In 1970 you could get an accurate portrayal of the Founding Fathers in Encyclopedia Britannica or a correct definition of Woman in Webster’s Dictionary. But AI is going to change the World. Is that for the better? :-)
real GDP growing at 3% right now. We're not even coasting - we're booming.
Bob Elliott @BobEUnlimited It takes a combo of dynamics to bring recession, many of which will likely come together in the next 6m or so. 1) late cycle 2) weakening of cyclical sectors 3) monetary, fiscal and/or market tightening 4) added drag (like weak foreign demand) That combo emerging now. Thread. 7:41 AM · Aug 25, 2023 · 345.7K Views
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