The Story Behind a Stock Market Milestone

June 28, 2021 will go down as a milestone in stock market history.

Image of a man holding multiple devices and a graphic that connects all of them

Source: Shutterstock

The stock market experienced a massive transformation on that day – and most investors didn’t even notice.

On that day, Facebook (NASDAQ:FB) topped $1 trillion in market value.

It was the fifth U.S. technology company to reach that level, following Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Google holding company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL).

About 11 months ago, in late August 2020, the total market capitalization of the “Big 5” combined surpassed $9 trillion. That made this group of stocks more valuable than the entire European stock market.

That had never been true before.

Stock-Picking Legend Shares One of His Top Plays for 2022

Those five companies — the five biggest in the S&P 500 — now account for more than 23% of that market index. That’s up from 11% of the S&P 500 just six years ago.

The S&P 500 has changed a great deal over the past few generations.

Even in 1960 — the year John F. Kennedy ran for president on a platform of closing the gap in the “space race” — no pure tech firm occupied the S&P 500’s Top 5… not even IBM (NYSE:IBM). It ranked sixth.

Here’s a quick breakdown of the Big 5 over the last 60 years…

  • 1960: AT&T (NYSE:T), General Motors (NYSE:GM), DuPont de Nemours (NYSE:DD), Standard Oil Co. of New Jersey, and General Electric (NYSE:GE) occupied the top five spots.
  • 1980: The top five were IBM, AT&T, Exxon Mobil (NYSE:XOM), Standard Oil of Indiana, and Schlumberger (NYSE:SLB).
  • 1990: IBM, Exxon, GE, Philip Morris International (NYSE:PM), and Royal Dutch Shell (NYSE:RDS-A, NYSE:RDS-B) came out on top of the S&P 500.
  • 2000: GE, Exxon, Pfizer (NYSE:PFE), Citigroup (NYSE:C), and Cisco Systems (NASDAQ:CSCO) reigned.
  • 2010: Even just 11 years ago, the top of the S&P 500 wasn’t very “tech-y”… with ExxonMobil, Apple, Microsoft, Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B), and GE on top.

Clearly, the global economy had a long run with oil. But now it runs on data… on technology.

And look at where that’s gotten the Big 5. In the past five years…

  • Alphabet is up 240%.
  • Amazon is up 333%.
  • Apple is up 440%.
  • Facebook is up 190%.
  • Microsoft is up 398%.

That demolishes the S&P 500’s 102.5% return over the same stretch.

If you’ve ever thought that technology innovation has slowed, you need to think again; technology is still the engine that drives our economy and the stock market.

That’s a simple truth… but it also is the key to what I believe is the biggest investment opportunity in the world today.

To date, I’ve found 42 investments that have returned 1,000% or more gains.

The opportunity I want to tell you about today, I believe, could result in my next 1,000% winner…

The Biggest Crisis Facing America Today

A lot of very well-off people got a whole lot richer over the past five years, especially Big 5 executives, employees, and shareholders.

But consider this…

At the same time, many Americans are locked in a cycle of debt, dependency, and grim employment prospects.

The middle class is shrinking… but not because more people are getting rich. Millions of folks are sinking below the poverty line.

In 1980, the richest 10% of Americans own about three quarters of all household wealth in the country. While at the same time, the bottom 50% owns just 1% of all household wealth.

And when you get to the bottom 20% of American households, the facts are downright pitiful: The bottom 20% of American households has a negative net worth. This group’s average net worth is a negative $8,900. In other words, their credit card balances are larger than their savings accounts.

The shockingly large divide between America’s richest and poorest households has been growing larger, year after year… and it continued to do so last year, despite the Covid-19 pandemic.

Man Who Found 41 1,000% Gains: Buy This Tech

According to Institute for Policy Studies analysis of Forbes data, the combined wealth of all U.S. billionaires soared by nearly 60% between March 18, 2020 and July 9, 2021 from approximately $2.9 trillion to $4.7 trillion.

Given this shocking inequality, it’s no wonder that huge swaths of America are filled with millions of impoverished and desperate individuals and families.

Meanwhile, a small group of wealthy people continue to live in beautiful, gated communities and accumulate a larger and larger share of the nation’s wealth every year.

Thanks in large part to the Big 5 and other tech companies, the economy is humming, we’ve got nearly full employment, and the stock market keeps rising.

Yet… the net worth of America’s lower and middle classes keeps plummeting.

On one side are the rich — who fully understand what’s happening and are taking advantage of the situation.

On the other side… well… there’s everyone else.

We call this wealth gap the “Technochasm.”

Which Side Are You On?

I wish I could tell you this situation will be resolved soon, but it won’t.

But you can educate yourself about it.

And more than that… you can make sure your portfolio is positioned to make the most possible profits.

You want to make sure you’re on the right side of the Technochasm.

Could this stock be the #1 5G play?

I’ve dedicated my time to learning everything I can about the Technochasm. I’ve shared some of what I learned with you in today’s report.

To learn everything you need to know about this incredibly powerful principle, and the specifics on how to use it for the chance to put yourself on the right side of the Technochasm, you simply need to watch a brand-new video presentation that I just finished putting together.

In addition to the three simple steps anyone can take to boost their odds of potentially staying on the right side of the Technochasm, I name one of my favorite investments with a high likelihood to be his next potential big winner.

I hope you’ll take a few minutes to check it out.


Eric Fry

P.S. A new platform could transform every industry and supercharge the digital economy. In this video, I give away the name of one of my favorite stocks in this space. Click here for more.

NOTE: On the date of publication, Eric Fry did not own either directly or indirectly any positions in the securities mentioned in this article.

Eric Fry is an award-winning stock picker with numerous “10-bagger” calls — in good markets AND bad. How? By finding potent global megatrends… before they take off. In fact, Eric has recommended 41 different 1,000%+ stock market winners in his career. Plus, he beat 650 of the world’s most famous investors (including Bill Ackman and David Einhorn) in a contest. And today he’s revealing his next potential 1,000% winner for free, right here.

Article printed from InvestorPlace Media,

©2021 InvestorPlace Media, LLC