This week we get into portfolio theory, or lack of, as for many the rush to big tech and wilful ignorance of everything else Wall Street has to offer seems to be the rule as opposed to the exception. Why is that, and is it sustainable? [Repeat from February, 2024]

For more on Bubble Trouble, including transcripts of the show, visit us online at http://bubbletroublepodcast.com

You can learn more about Richard at https://www.linkedin.com/in/richard-kramer-16306b2/

More on Will Page at: https://pivotaleconomics.com

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The Magnificent Seven: Unpacking the Impact of Big US Tech Stocks

In this episode, Richard Kramer and Will Page, analysts specializing in financial markets, discuss the 'Magnificent Seven', a term referring to the big US tech companies and their significant market impact. Kramer eloquently illustrates the concentration of wealth within these tech giants and their extensive media coverage, which contributes to their continual growth. They discuss the concept of long tail distributions and how it correlates with a constraint in attention leading to invested interest in just a few companies. They scrutinize the implications of concentrated wealth and potential future industry shifts, emphasizing the need for cautious investment strategies, despite the allure of being swept up in booming tech sectors.

00:01 Introduction

00:48 Part One

00:48 The Role of Big US Tech in Portfolio Theory

03:30 The Magnificent Seven: Who Are They?

07:28 The Long Tail Effect in Financial Markets

22:56 The Investment Thesis: Backing Big Tech

23:13 Part Two

23:25 The Geographic Disparity in Big Tech

38:09 Smoke Signals: Indicators of Market Shifts

41:41 Conclusion: The Future of Big Tech Investments

41:54 Credits

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