Thread by @woonomic

A case for SPX bull.

SP500 tracks the top 500 large cap stocks.

All highly successful companies are tech companies of their day, new tech gains a leveraged advantage over competitors.

Internet tech is increasingly dominant...

Let's look at the make up of the top 10

1 Apple
2 Microsoft
3 Amazon
4 Facebook
5 Google (A shares)
6 Google (C)
7 Berkshire Hathaway
8 Johnson & Johnson
9 Visa
10 Procter & Gamble

Notice the dominance of tech? Visa is tech also in that it facilitates Internet transactions.

The current pandemic has the impact of driving businesses into HIGHER efficiency, not lower.

Zoom vs Jet travel
Your lounge vs the business lounge
Digitisation of business processes needed for location independence

Even if you're bricks and mortars you now get more efficient.

So the SPX is increasingly dominated with tech companies, and tech companies only go higher. And remember this index tracks the top 500 large caps, if you're suffering, you drop off the index, if your a high growth tech company you may come onto that index.

Everything I'm describing is real growth. Nevermind the inflationary skew the money printing is adding.

It's my contrarian thesis; needs a traditional quant with access good data to wrap numbers around it to make it valid or stupid.