The analyst consensus of the financial services provider Bloomberg shows that the five heavy weights the 12-months price target is close to 12 % above the current price levels, while the average for the remaining market and in particular for old style companies is in the low single digits.
Clearly, this is supporting our view that knowledge intensive businesses and service driven operations, so mainly “new economy” is expected to deliver ongoing positive returns on the background of further use of advancing digitization.
The leading 5 stocks (in terms of weight) of the S&P500 represent 15.61 % of the total market capitalization. The index is presently worth about USD 26.52 trillion, with Microsoft (USD 1 trillion), Amazon (USD 935 billion), Apple (USD 920 billion), Alphabet (USD 750 billion) and Facebook (USD 535 billion), thus accounting USD 4.14 trillion.