Well the seperation started mid-2020 and we all know what happened around then.
Covid and stops to production. Additionally I think the rise in the S&P500 could be attributed to some tech firms that really pumped in valuation during that period like streaming services, videogames and remote work tools. All things that were in wide use at the time.
Post pandemic we have seen a majoy pump in AI related companies which again isnt directly related to this metric but tangentaly so. The H100 and A100 servers used in most training clusters weigh a lot and are shipped out to datacenters but remain there for the devices lifetime but continue to generate value.
A lot of money was pumped into the economy after 2019. See M1 supply below. Chart goes vertical around 2020. They didn’t just print some extra, they put it into 6th gear and floored it… That money had to go somewhere…
SP500 by market cap weight is now heavily dominated by tech stocks. I guess they don’t need so much in the way of trucks to shift their product. All delivered digitally.
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Well the seperation started mid-2020 and we all know what happened around then.
Covid and stops to production. Additionally I think the rise in the S&P500 could be attributed to some tech firms that really pumped in valuation during that period like streaming services, videogames and remote work tools. All things that were in wide use at the time.
Post pandemic we have seen a majoy pump in AI related companies which again isnt directly related to this metric but tangentaly so. The H100 and A100 servers used in most training clusters weigh a lot and are shipped out to datacenters but remain there for the devices lifetime but continue to generate value.
A lot of money was pumped into the economy after 2019. See M1 supply below. Chart goes vertical around 2020. They didn’t just print some extra, they put it into 6th gear and floored it… That money had to go somewhere…
[https://fred.stlouisfed.org/series/M1SL](https://fred.stlouisfed.org/series/M1SL)
SP500 by market cap weight is now heavily dominated by tech stocks. I guess they don’t need so much in the way of trucks to shift their product. All delivered digitally.