I find the following chart very interesting:
The chart above shows that the combined market capitalization of the FANMAG stocks (Facebook, Apple, Netflix, Microsoft, Amazon, and Google) exceeds that of every major country, except for China. The remainder of the U.S. stock market -- excluding the FANMAG stocks -- is still the largest market in the world.
What does this mean? Like a Rorschach test, the chart can mean different things to different people. For some, it shows that while the FANMAG stocks have done extraordinarily well, there is still a whole investment universe out there, including stocks that may have more attractive valuations. For others, it shows a dominant group of successful companies that exhibit no sign of slowing down (even with heightened regulatory scrutiny).
What do you see? Let me know your thoughts.
Words of Wisdom
The conference was worse than a Rorschach test: There's a meaningless inkblot, and others ask you what you think you see, but when you tell them, they start arguing with you. -- Richard Feynman