The vanishing trillion-dollar market cap club could make a schadenfreude read as the worst cost of living crisis in more than four decades, and evaporating investment portfolios wreaked havoc in 2022.

Wheel burn-out pedal to the metal monetary easing to slam the brakes tightening debt blowouts does have consequences.

$1 Trillion Market Cap Club
Central banks monetary easing policy

“Wheel burn-out pedal to the metal monetary easing to slam the brakes tightening debt blowouts does have consequences”

WEALTH TRAINING COMPANY

Indeed, more than seven trillion dollars have evaporated across the asset spectrum. Every asset class shed wealth in 2022 from stocks, cryptos, bonds, commodities, and even precious metals as central banks pumped and dumped trillions of dollars of liquidity on the markets.

Gold holdups next 

We would buy precious metals, but when the charade is over central banks will hunt for every ounce of gold available to secure their respective currencies. Negative-yielding sovereign bonds and spent trust in monetary policy ain’t going to cut it anymore. 

The government of Franklin D Roosevelt seized all gold bullion and coins via Executive Order 6102, forcing citizens to sell at well below market. 

Gold Secular Bull Rally

“We would buy precious metals, but when the charade is over central banks will hunt for every ounce of gold available to secure their respective currencies”

WEALTH TRAINING COMPANY

The consequence of the bubble-creating bubble-popping monetary policy is also the vanishing trillion-dollar market cap club

Today there are just four companies with a market capitalization greater than one trillion dollars. In January 2022, Apple became the first company to hit the $3 trillion market cap milestone.

Apple, in November 2022, was worth $2.2 trillion, which is more than Amazon, Meta and Alphabet combined.

Aramco joined the $1 trillion club immediately after the company’s IPO in December 2019. Aramco had a market capitañisation of $2.0 trillion in November. 

“Meta’s market capitalization in 2017 was 515B, and in just four years it doubled to the $1 trillion market cap club in 2021, then crashed in November 2022” – Wealth Training Company

Microsoft joined the 1 trillion dollar club in April 2019 and had a market capitalization of $1.6 trillion.

Alphabet joined the $1 trillion market cap club in 2020 and has a market capitalization of $1.1 trillion.

Amazon entered the $1 trillion market cap club in 2020 but left the club in November 2022 with a market capitalization of $911B 

Tesla made it to the $1 trillion market cap club in October 2021 and was later booted out this year, in April 2022, as its market capitalization fell to $670 billion six months later.

Meta’s market capitalization in 2017 was 515B, and in just four years it doubled to the $1 trillion market cap club in 2021, then crashed in November 2022.

Interesting observations of the $1 trillion market cap club

Post lockdowns monetary easing, giant companies have consolidated their wealth. The bigs keep getting bigger. 

Companies riding the long wave of innovation, the electrification of transport, the digitalization of everything, the boom of online retailing grew the most.

But central bank tightening to combat inflation has taken its toll on household consumption.

The digital revolution is in play, and the technologies that enhance human connections, and interactions and not replace them will outperform.

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