Something has been bugging me for several weeks now: prices for US listed stocks are very high. I mean absolute prices, not valuations based on P/E, P/B, etc. For example, yesterday's price of a single Tesla share was $475, likewise for Microsoft, also at $475, Meta was $647, etc. Doing a bit of quick research, the median price for S&P 500 stocks recently was approx. $120 and for NASDAQ 100 it was $245.
By comparison, a study by the Fed showed that in 2000 the equivalent median prices were $29 and $25.
Does this mean anything practically? Yes, and no. No, because it is the total market cap that really matters. And yes, because the higher they fly the longer the way down. Meaning, the absolute losses for a shareholder are now potentially significantly bigger.
Was there a similar past occurrence in US markets? Yes, in 1929: for example, the price of RCA (aka "radio") was around $550 in September 1929. It ended up at $15 in 1932.
I don't mean anything by the above, it's just a weird observation.
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