The Kobeissi Letter

Large cap US stocks are getting larger: The largest 50 stocks' market capitalization to GDP ratio it at a record 110%. This ratio has risen ~40 percentage points since the October 2023 low exceeds the previous peak posted in December 2021. To put this into perspective, this percentage was 74%, or 36 percentage points lower, at the 2000 Dot-Com Bubble peak. In nominal terms, the 50 largest stocks are worth more than $30 TRILLION. That's ~50% of the entire US stock market's value.