💥 THE ILLUSION OF EXPONENTIAL GROWTH

🔺 Today, the structure of the U.S. stock market looks like a caricature of diversification. Just 41 AI-related stocks make up only 8% of the S&P 500’s composition — yet they already account for 47% of its total market capitalization, an all-time record. The remaining 459 stocks, the vast majority of the index, represent only 53% of its capitalization. This means that the fate of the “broad” market now depends on a handful of companies betting on the same fashionable idea.

🔺 The driving force behind it all is a dozen corporate giants that not only profit from the AI hype but also amplify it in sync through endless declarations about a “revolutionary future.” In reality, most of these promises have yet to translate into actual gains in efficiency or profits. These companies reinforce each other in a coordinated loop — shared press releases, cross-integrations, mutual sales — all to sustain the illusion of exponential growth.

🔺 The market now exists in a state of self-sustaining faith in miracles. But the higher the concentration of capital within a single segment, the harder the fall when reality asserts itself. This bubble has already surpassed the dot-com era — and when it bursts, the drop won’t just be painful; it will be systemic.

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