The answer is ultimately quite simple.
To understand US stock indices you must understand that they are driven by some exceptional stocks achieving extraordinary turnover, extraordinary growth and extraordinary profits.
Stock prices also and logically value all of these extraordinarily well and there is nothing surprising in this.
Google, Meta, Amazon, the GAFAMs, shall we say, have impressive coffers and dominant positions that threaten almost nothing.
Can these spheres move exactly?
Two things.
1/ Change in use. This is the case of the Amazon, which thanks to its military and phenomenal logistics success, but is a bit polluting and very carbon-intensive because they can get you anywhere in the world in 24 hours but in a diesel van… Decarbonizing the Amazon means risking slowing down the Amazon. So you can make a big change in use that threatens the economic model of this distribution giant (this is not a certainty, it is possible, conceivable).
2/ Legal risk, from abuse of dominant position to restriction of management. Most recently, at a hearing in the US Senate, Facebook’s boss had a very bad time regarding the use of his social network by pedophiles. Legal risk is very real and can exist. For example, Google didn’t get away with disbanding a few months ago (it’s not certain, it’s possible, it’s conceivable).
For the rest, these companies have become almost unbeatable, and subscribers to the STARTEGIES newsletter know which ones are on the list of stocks to buy.
In any case, never forget to diversify your assets, even if it means reducing profitability or expecting gains.
Diversification is a principle that should never be deviated from.
It is already too late, but all is not lost.
Prepare yourself!
