Big Tech has had a tremendous run since over the last years against the US broader market. The developed markets outside of the US, especially Europe, have been left behind partly due to the relatively low weight of technology stocks in the market. Apple, Microsoft, Amazon, Facebook and the parent company of Google, Alphabet represent 22% of the S&P 500, an unseen concentration on 5 companies. The winner takes it all argument where Big Tech is ruling the world and dominates in terms of market share has been an overwhelming bullish argument for investors. The Covid-19 pandemic has accelerated this move:
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Léon Kirch, CIO & Partner