AI Driving Market Returns? | Size of Top 2 S&P 500 Stocks Now 15%? | Relative Performance of Tech vs S&P 500 Index at Extreme Levels

Broken Pie Chart

English - May 21, 2023 17:09 - 43 minutes - 39.5 MB - ★★★★★ - 16 ratings
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Previous Episode: US Default Chances Overblown? | Option & Bond Markets Not Showing Fear | Chat GPT AI Research 1979 US Debt Default | Short Sale Ban?

Next Episode: AI Is the New Crypto & Blockchain Post Nvidia Earnings | Reach for Long Duration Bonds | More Fed Rate Increases Coming? | 7% Treasury Bills?

Derek Moore and ZEGA Financial CEO Jay Pestrichelli do it again. That’s right they talk about AI but this time around how it may be driving Mega Cap Tech performance relative to the rest of the market. Plus, the weight of the top 2 S&P 500 companies is the highest since 1978 and the top 10 companies weighting is now 30%. They debate whether this is nothing or something. Finally, they discuss the LEI Leading Economic Indicator declining for 13 straight months without a “declared” recession yet.

LEI Leading Economic Indicators

Relative performance year to date between mega cap tech down the line to micro caps

FAANMG forward PE ratios

FAANMG = Facebook, Amazon, Apple, Netflix, Google, Microsoft.

Carter Worth CNBC talks about relative tech performance at extreme levels.

Top 2 companies at the highest weighting since 1978

Today its Apple | Microsoft but in 1978 its was AT&T and IBM

Top ten companies in S&P 500 average weighting vs today

ChatGPT time to reach 100 million users vs TikTok, Instagram, Google Translate, and Netflix

Investors seem to be flowing into mega cap tech as an AI play.

ChatGPT reached 100 million users in just 2 months.

The Levis blue jeans (picks and shovels) approach to new tech?

Mentioned in this Episode:

Global X article explaining ChatGPT and regenerative AI https://www.globalxetfs.com/generative-ai-explained/

US Default Chances Overblown? | Option and Bond Markets Not Showing Fear

https://podcasts.apple.com/us/podcast/us-default-chances-overblown-option-bond-markets-not/id1432836154?i=1000612967755

Dividend Deep Dive | ChatGPT AI Fed Research | Do Markets Go Up After Fed Pauses?https://podcasts.apple.com/us/podcast/dividend-deep-dive-chatgpt-ai-fed-research-do-markets/id1432836154?i=1000612068985

Jay Pestrichelli’s book Buy and Hedge https://amzn.to/3jQYgMt

Derek’s new book on public speaking Effortless Public Speaking https://amzn.to/3hL1Mag

Derek Moore’s book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr

Contact Derek [email protected]