⚡️Market Strategy Flash
June 18, 2026
A couple of weeks ago, I explored some thoughts and related research questions about the space economy. While it’s a thrilling time to look upward and outward, scaling and valuing an industry that may operate beyond our lifetimes and investable horizons requires a sober perspective.
This week, I illustrate the brutal reality of the Time Value of Money (TVM) and compound interest, which Albert Einstein referred to as the “eighth wonder of the world.” It’s tempting to think that the universe is physically infinite, so the economic value waiting to be extracted is also infinite. Mathematically and economically, however, that may be unrealistic.
Over the next century, imagine that humanity succeeds in creating an interstellar civilization worth quadrillions of dollars annually. Spoiler alert: 100 years of compounding at 5% is so powerful that it reduces an infinite stream of $1 quadrillion (Q) of annual revenues down to a lump-sum present value (PV) of $152.1 trillion (T) in today’s dollars (see the table below)!
The present value of an infinite perpetuity
Sources: WCG, 6/15/26. Notes:Forecasts and projections are for informational purposes only, may not come to pass, are not guarantees of future results, and are subject to change without notice.
To determine the PV of an infinite stream of annual cashflows starting 100 years in the future, the calculation must be broken into a two-step valuation model:
1. Perpetuity Value: Calculate the lump-sum value of the infinite $1Q annual cashflows at the end of the forecasting horizon (i.e., year 100).
2. Present Value Discount: Discount that massive future lump sum back to the present day (i.e., year zero) to account for the 100-year time horizon at a 5% discount rate.
Let’s treat our interstellar economy as a “going concern” that produces cashflows of $1Q annually, every single year, forever, starting in year 100. Assuming the first annual cashflow occurs at the end of year 100 (which is “capitalized” in year 100), here’s the step-by-step mathematical breakdown:
First, we must calculate what an infinite stream of $1Q is worth in year 100, which is $1Q divided by 5% or $20Q.
Second, we must discount that entire infinite block of value back to the present day:
Where PV = $20Q / [(1.05)^100] = $152.1T
A 100-year TVM “Growth-Decay” Curve
Sources: WCG, 6/15/26. Notes: PV = Present value. TV = Terminal value.
Even if humanity successfully builds an economy capable of generating an infinite stream of $1Q per year, the brutal compounding power of the TVM over a century eliminates 99.24% of its PV today (see the chart above)!
At a 5% discount rate, the entire infinite multi-planetary future of our civilization is worth exactly $152,089,799,957,470 in today’s dollars – remarkably close to the current market capitalization of Earth’s stock market (see the chart below)!
$150T may become an early waypoint, rather than an upper limit
Sources: Google, Visual Capitalist, WCG, 6/15/26. Notes: UK = United Kingdom. US = United States.
For any investable timeline today, Earth remains the primary engine and ultimate consumer until we encounter and trade with other planets and civilizations. If humanity transitions to a multi-planetary species – moving toward a Kardashev Type I or II civilization that harnesses the total energy of our local star system – Earth’s current market cap of roughly $150 trillion may be a reasonable longer-term theoretical lower bound.
Mechanically, my “Earth market cap” target implies a raw expansion of 7,043% or a growth multiple of 71.4x for the space sector’s current market cap ($2.1T) to equal the current global market cap of all public equities on our planet ($150 trillion).
What’s Earth’s stock market trying to tell us now?
When the theoretical baseline of our multi-planetary future ($152.1T+) harmonically converges with the current aggregate value of our terrestrial reality ($150T), it’s a message worth decoding. If global equities are the ultimate, forward-looking discounting mechanism, they may be telling us two distinct, highly provocative stories.
Choose Your Own Adventure:
1. The Capitalist “Event Horizon”
Did you see the 1997 sci-fi film, Event Horizon? In this Market Strategy adventure, stocks have a definitive, mathematical edge of vision.
Astrophysicists call it the “observable universe” – the absolute limit of what we can see before the speed of light cuts us off. Investors also have an “observable universe,” and it’s governed by the discount rate. In other words, the PV of $152.1T means the stock market can’t see past the 21st century. The compounding gravity of a 5% hurdle rate creates a financial “event horizon” 80 - 100 years hence.
Stocks aren’t necessarily saying an interstellar future will happen; they’re saying even if it does happen, eternity is completely worthless to a (human) trader today. In short, capitalism’s absolute speed limit is equal to one human lifespan … until we solve the longevity problem, too.
2. The Human “Survival Premium”
On a macroscopic scale, the Efficient Market Hypothesis (EMH) sends an incredibly optimistic message: Humanity’s transition to a Kardashev Type I civilization is mostly priced in!
If the stock market genuinely believed we were going to wipe ourselves out via climate collapse, nuclear war or asteroid impact in the next few decades, the global market cap would be heavily discounted for that “existential” risk. Instead, it’s trading eerily close to the PV of a species that successfully scales the solar system. Collectively, investors are placing a $150T bet that we survive, adapt and eventually generate a $1Q orbital economy.
Bottom Line: Earth’s current market cap of $150T isn’t just pricing in next quarter’s or even next year’s earnings. Rather, $150T is effectively the baseline “strike price” for the continuation of the human species.
Definitions
Market Cap is the total dollar value of a public company’s outstanding shares of stock. It’s calculated by multiplying a company’s total shares by the current market price of a single share.
TVM is a core financial concept stating that a sum of money in your hand right now is worth more than the exact same sum promised in the future. That’s because money today can earn interest, grow through investments and avoid the eroding effects of inflation.
One of the foundational equations of finance, the standard perpetuity formula is PV = CF / r, where PV = present value, CF = cash flow per period, r = discount rate.
The Gordon Growth Model is PV = CF1 / r - g, where CF1 = next period’s cash flow, r = discount rate, and g = perpetual growth rate.
The Kardashev Scale is a framework proposed in 1964 by the Soviet astronomer Nikolai Kardashev to classify civilizations according to the amount of energy they can harness and use.
A Type I Civilization (Planetary Civilization) can utilize essentially all the energy available on its home planet.
A Type II Civilization (Stellar Civilization) can utilize a substantial fraction of the total energy output of its star.
The EMH states that stock prices always show all available information. As such, it’s difficult for investors to beat the market or buy undervalued stocks.
Disclosures
The views expressed are for informational and educational purposes only and are subject to change without notice.
This material is not intended as, and should not be interpreted as, individualized investment advice or a recommendation to buy, sell, or hold any security, sector, industry, or investment strategy.
References to specific companies, securities, sectors, or industries are for illustrative purposes only and should not be construed as investment recommendations.
Investing involves risk, including the possible loss of principal. Investments in a specific industry or sector may involve greater risk and volatility than more diversified investments.
Past performance is not indicative of future results. No investment strategy can guarantee a profit or protect against loss.
Forward-looking statements, including views about future demand, pricing, supply, or industry cycles, are based on current expectations and assumptions and are subject to risks and uncertainties. Actual results may differ materially.
Data and information are believed to be reliable, but accuracy, completeness, and timeliness are not guaranteed. Source documents should be retained for factual claims, third-party research references, and company-specific data.
Portfolio holdings, allocations, and risk budgets are subject to change based on market conditions, client objectives, and investment guidelines.
The author, firm, clients, or related persons may hold positions in securities mentioned and may buy or sell those securities without notice, subject to applicable policies and regulations.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment Advice offered through WCG Wealth Advisors, LLC, an SEC Registered Investment Advisor. WCG Wealth Advisors, LLC and The Wealth Consulting Group are separate entities from LPL Financial. Index performance is shown for illustrative purposes only and does not predict or depict the performance of any investment. Past performance does not guarantee future results.
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In general, stock values fluctuate, sometimes widely, in response to activities specific to the companies as well as broad market, economic and political conditions. Stock investing involves risks, including fluctuating prices and loss of principal. Value investments can perform differently from the market as a whole. They can remain undervalued by the market for long periods of time. (135-LPL) International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets. (93-LPL)
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The fast price swings in commodities will result in significant volatility in an investor’s holdings. Commodities include increased risks, such as political, economic, and currency instability, and may not be suitable for all investors. (122-LPL)
Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss. (28-LPL)
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This is for educational / general purposes only, does not constitute investment, tax or legal advice and should not be relied on as such. This is not to be construed as an offer to buy or sell any financial instruments. Any strategies discussed are not intended to be relied upon as the sole factor in making an investment decision for any individual. As with all investments there are associated inherent risks. Please obtain and review all financial material carefully before investing. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested in directly. These comments should not be construed as recommendations but as an illustration of broader themes.
Forward-looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions; there can be no assurance that actual results will not differ materially from expectations. In addition, forward-looking statements, including index targets or market scenarios, are hypothetical in nature, reflect current views and assumptions and are subject to change based on market and economic conditions and are not guarantees of future performance. This is a hypothetical example and is not representative of any specific investment. Your results may vary. (88-LPL) Scenario outcomes are illustrative and not predictive. This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.
The S&P 500 is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States. Indexes are unmanaged and cannot be invested in directly. (102-LPL)
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Publication Date: June 19, 2026
For Public Use in the US
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