Part 11/16:
The broader stock market reflects these technological trends. Tech stocks now comprise a record 56% of the US stock market’s total capitalization—surpassing the levels seen during the 2000 dot-com bubble. Defensive stocks, which traditionally hedge against economic downturns, have shrunk to just 16%, the lowest in history, indicating market confidence (or speculation) in the tech sector’s future.
This shift underscores how technology has become the primary driver of market value, with a plethora of innovative companies vying for dominance. The current environment resembles a modern gold rush, driven by AI and data center infrastructure investments, but also raises questions about sustainability and market stability.