Quote of the Day

Wowsers

America represents 70% of of all value globally so if you think about it would you rather own the world would you rather own America for $70 or if you could own everything but America for 30 which would you pick and what that says to me is that America is overvalued

—Obsidian Wings noting a comment in the Kara Swisher/Scott Galloway Podcast Pivot where Galloway noted that 70% of equity and debt value in the world is in the US stock and bond markets.

Galloway goes on further noting that there are, "10 stocks that represent 28 to 33% of the value," of US markets, which means that about ⅕ of all global wealth is in 10 companies.

The most obvious point here is that the 10 highest market cap companies, in order Apple, Microsoft, Nvidia, Alphabet (Google), Amazon, Meta (Facebook),Tesla, Taiwan Semiconductor Manufacturing Corporation, Broadcom, and Berkshire Hathaway.

So, you have a luxury goods company who gets most of their profit from monopoly rents (Apple), a software company whose success is due to inertia (Microsoft), a niche product riding the unsustainable AI bubble (Nvidia), a monopolist whose primary product they have been enshittifying for years (Alphabet/Google), a monopolist whose primary product they have been enshittifying for years (Amazon), a company whose route to profit since its founding has been harming its users (Meta/Facebook), a company whose profitability is entirely due to government subsidies (Tesla), a company who makes the best computer chips in the world (TSMC), another company riding the unsustainable AI bubble (Broadcom), and an investment firm that is unlikely to survive a decade past the expiration of its nonagenarian founder (Berkshire Hathaway).

That's a f%$# ton of "wealth" accounted by companies that don't do anything of real value.  (Except for TSMC, they produce a real product with real quality)

When the music stops, we are going to be in a world of hurt.