And the other thing lane is that people go, Oh, the stock market’s at all time highs. My 401k is back where it was even better, et cetera. There is a major disjoint, if you will, between the stock market indices and the health of the economy, you have stock markets who are back to all time highs. But I look at the S and P 500, I call it the S and P six, or maybe S and P seven.
If you want to count Tesla, now, then it was the S and P 500 is a cap weighted index. That means if you have a larger market capitalization, you count for more in the index itself. 40% of the index. Is now seven stocks and you know what they are. It’s Amazon, Microsoft, Google, Facebook, Netflix, Apple. And now you can throw in Tesla and maybe one or two others, and they’re the ones going up.
They’re the ones that least affected by the pandemic. They’re overwhelmingly digital. Okay. Amazon owns whole foods and Apple has some showroom type stores. But not much, mostly they’re online and they’re selling digital products and advertising and data mining, et cetera. So they were not only unaffected by the pandemic, but did better because that was the only place people could shop or communicate.
But what about the S and P 490? What about the other stocks in the S and P 500? Have a look they’re all the kind of flat to down there. Yeah. There’s some individual cases that have gone up, but on average they are flat to down. So we bet our whole economy. So there’s six or seven stocks. So there’s no.
Relationship between how the stock market and the seas are doing and how the economy is doing. When we get back to the economy who suffered the most and who continues to suffer the most small and medium size enterprises. So restaurants, bars, nail salons, dry cleaners, boutique shopping on and on. There’s a long list and people look down their nose at that and they go, wow, you’re a small business who cares, or you’re not Apple, computer, whatever.
Sorry. Those small businesses are 45% of GDP and 50% of all jobs. That’s half the economy right there.