The S&P 500 closed yesterday with a record $21.6 trillion in market cap, a number that was already above $20 trillion.
But that’s not the only thing that’s happening, according to a new report from Credit Suisse: The S-curve is widening, which means that a lot of the gains made by large companies during the boom years have now gone to the bottom 90%.
And the bottom 70% of the market have seen their share prices drop by 25% over the past four years, according a Credit Suise report.
The most notable losses of all are tech giants Google and Facebook.
In a year when the S&s stock price soared by nearly 60%, Facebook lost more than $1.3 trillion while Google lost $1 billion.
“It’s not a great story,” said Andrew J. Shearer, a senior analyst at Credit Suiser, in an interview.
For its part, the S-Curve, which measures market performance and is a widely accepted benchmark for companies, has remained pretty stable for decades.
It is currently hovering around the median, at a time when the median stock price is above $50 trillion.
So the S.P. 500 is up more than 20% this year, which is still within the range where it has historically outperformed the broader market.
But the report also shows that the S/E has lost money, which in the case of the S &M is roughly the same as the S market’s performance over the same time frame.
And the S is losing money because the S and M indexes have become increasingly concentrated in the bottom 10%.
“The S&M index has gotten bigger, and that’s been a big part of the problem,” Shearer said.
A S&am market that’s a lot smaller, and so the S index has been doing really well.
As the S stock market is shrinking, the rest of the markets are losing value.
In fact, there are several stocks that are outperforming the S+M index by far, such as Google and Amazon.
That is the opposite of what has been happening over the last decade, and it’s what’s happening now.
But Shearer doesn’t see a solution to the S curve problem in the next two years.
What has changed?
Shearer said that while the S Index has historically been growing at a steady pace, that has been slowing as a result of a combination of two factors: First, the rise in the cost of capital, which makes companies increasingly reliant on debt to build their businesses.
Second, the advent of robots that are replacing workers, making it more difficult to maintain existing operations.
She also points out that the market is very heavily weighted toward large, publicly traded companies, and companies with large markets, like Google and Apple, are losing out on opportunities to grow their businesses through new acquisitions.
Meanwhile, the global economy has become more complex and global, and as the global financial system has become less predictable, the economy is increasingly vulnerable to shocks.
If the S Market continues to lose value, Shearer expects that the economy will take a “cavalier” turn, and many investors will begin to look for new, more stable sources of income.
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