When it Comes to Stocks, It’s Hard to Stay on Top

I’ve written several posts about how difficult it is for companies to remain at the pinnacle in terms of market capitalization. It is not likely the current big winners like Apple, Google, Microsoft will be at the top a decade or two from now. Jason Zwieg addresses the issue in a recent article entitled “Apple Still Wears the Mark Crown. It Can Easily Slip.”

The following is a quote from the article:

Many investors seemed to believe, at least until this week, that today’s giant technology companies will dominate the U.S. stock market for decades to come. And those investors could still be proven right. But, if they are, that proof will defy not just nearly a century of market history but the wisdom of the ages, which teaches that all things—including wealth and power—are cyclical.

The world changes. Successful investment strategies adapt to those changes.