Can someone ELI5 how the S&P500 can keep an average 10% growth rate for another 30+ years? The tota

[human1234]

Can someone ELI5 how the S&P500 can keep an average 10% growth rate for another 30+ years?

The total market capitalization of the S&P500 is $52 trillion, if my math is right this means it would double to over $100trillion in 7ish years, and by the end of 30 years be approaching almost $1quadrillion in value ($900 trillion)? 

That sounds really stupid and impossible to me. Plus with the birth rate is in constant decline, market growth is only going to slow as less consumers enter the market than before. Which tells me in the future there will be less and less new mega corporations and all the wealth will continue to consolidate into a few huge companies. 

The only thing that makes sense is that more and more multi-trillion dollar companies like Microsoft and Apple start entering the S&P500, to the point where almost every company is worth trillions or close to it. Which also sounds really stupid.  

Where is all this money going to come from? Even if we assume inflation wipes out half of that $900trillion in growth of the S&P500 in today's money, that's still like a ridiculous increase that makes no sense. 

 

https://www.reddit.com/r/stocks/s/Q73UKTtHSw

[human1234]