The US internet shares have been roaring ahead, particularly in recent months. The coronavirus crisis has accelerated the shift toward online retail and smart communications, and these are the most obvious winners. It has been a giddy ride.
But the divergence in share prices now far outstrips the underlying economic reality. As the chart shows, the top five tech companies by market capitalisation today have risen 500% over the past six years, while over the same period the MSCI World ex-US index has been about flat. Apple alone is now worth more than 80% of the continental European market.1
