Vector Wealth Management

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The Three Trillion Dollar Club

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Nvidia, Microsoft, and Apple Drive Market Performance.

As of this month, there are only three companies in the world that have achieved a market capitalization (market value) of over $3 trillion: Nvidia, Microsoft, and Apple. One thing these companies have in common is artificial intelligence.

In this Market Perspective episode, Vector’s Jason Ranallo discusses past and present concentrations of market leadership.

We look back 30 years to companies like General Motors, Cisco Systems, and General Electric. At the time, these blue chips were some of the largest in the market. They came out of a century that saw the mass adoption of cars, radio, and the electrification of cities. What we know today is that these companies are no longer leading the index.

Changes in market leadership typically occur over time, either from companies rising in market value or others falling. Today’s AI darlings, and more broadly, the so-called Magnificent 7 (Apple, Nvidia, Microsoft, Amazon, Alphabet, Meta, and Tesla), are leveraging AI, computing, and scaling networks. Will they always? If history is a guide, no. But this doesn’t mean the three trillion-dollar club is going anywhere, either.

If you or someone you know has questions about concentrated positions in markets or in their portfolios, listen to this podcast, share, and let us know. At Vector, we help clients answer these questions and plan for the future.


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Time & Chapters:

0:06 ... The Trillion-Dollar Trio 

0:34 ... AI Influence and Market Giants 

1:00 ... Historical Market Leaders 

1:28 ... Dynamics of Market Leaders 

1:52 ... Market Trends 

2:30 ... Bubble? 

3:16 ... Closing Thoughts 

3:31 ... Regulatory 


About Vector

These discussions aim to spark dialogue about enhancing retirement readiness and making more informed financial decisions. At Vector, we delve into the nuances of scenario planning, offer insights and guidance tailored to each client's unique circumstances. If you or someone you know is pondering their financial future or seeking clarity on their retirement plan, we're here to help.

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This discussion is with Vector’s Jason Ranallo.

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