by Chris Black
Prior to 2020 there were only two companies in history that reached $1 trillion in market cap.
Both plummeted shortly after.
This time Apple hit $1 trillion and then added another trillion in less than six months.
Two years later the company hit $3 trillion.
An absolutely absurd valuation by any metric, especially when top line revenue actually declined over that period.
You don’t get a company like Tesla being valued at double the entire rest of global auto manufacturers combined without excessive speculation.
Tesla still isn’t more than 1% of the global auto industry, a niche player overall.
To grow into its valuation, 100% of all cars sold from here on out need to be Teslas.
In fact even more than 100%, since the company is valued more than every other manufacturer combined.
Then you have crypto, a trillion dollar bubble which is basically just people chasing returns in mostly worthless digital assets, birthing absolute insanity like NFTs that make the Beanie Baby bubble look like the definition of sanity.
Paying millions for a 30×30 pixel .jpg that everyone else on Earth can view and download could be the most insane “investment” in history.
This is all the fault of The Fed printing trillions over the last two decades and the dismantling of safeguards put in place after the Great Depression, things meant to prevent a second one.
The last twenty years also make the roaring twenties seem rational, rather than what was the peak of excess in the 20th century.