A few weeks ago, I was chatting with a new reader of Crowdability.
He’d built his portfolio the “traditional” way — some index funds, some bonds, a little real estate.
But then he said something that stuck with me: “Matt, it feels like the old playbook isn’t working anymore. The S&P 500 isn’t getting me where I need to be.”
As it turns out, he’s right: the investment world really has changed.
And last week, one of the biggest names in finance confirmed it…
Morningstar Creates a New Index
Morningstar, the research firm trusted by millions of investors for its ratings and analysis, just launched something new. It’s an index called the Modern Market 100.
At first glance, it looks like a traditional market benchmark, like the S&P 500 or the Russell 2000. But if you dig deeper, you’ll find a big twist:
- The index is made up of 100 leading U.S. companies.
- 90 of them are the names you’d expect — Microsoft, Apple, Nvidia, etc.
- But here’s the twist: the other 10 companies are private. They’re some of the biggest private startups in the world, including SpaceX, OpenAI, and xAI.
In other words, Morningstar just acknowledged what we’ve been saying at Crowdability for years:
To capture the true gains of the equity market, you can’t just include public stocks anymore. You also need to include companies in the private markets.
Why This Matters
If all it wanted to do was to create a new index to reflect the growing importance of AI or technology, Morningstar could have launched a new index that simply shuffled around the usual suspects — for example, a little more Nvidia and Apple, a little less GE or Coca-Cola.
But instead, it created something entirely new so it could include the private markets. Why? Because that’s where the growth is happening today.
The fact is, companies are staying private longer than ever. That’s why, by the time they IPO, much of their hypergrowth has already taken place.
For example, look at a company like Airbnb. By the time it finally went public in 2020 — after twelve years as a private startup — it was already worth over $40 billion. Its early private-market backers had already made life-changing fortunes. Public-market investors? They were late to the party.
Now we have private startups like OpenAI that are already worth $500 billion. Morningstar’s decision to include companies like this in its index is a recognition of the new reality.
It’s saying, loud and clear: Private markets are no longer optional. They’re essential.
The Bigger Trend
Morningstar isn’t alone in coming to this conclusion.
- BlackRock, the largest asset manager in the world, recently announced that it’s doubling its allocation to private markets.
- Vanguard is doing the same.
- Even Fidelity is expanding access to alternative investments for its clients.
Why the big change? Because private markets have been crushing public markets for years.
According to Cambridge Associates, a financial advisor with clients including Bill Gates and Harvard University, early-stage U.S. venture capital has delivered average annual returns of 58% over the past 25 years. The S&P 500? Less than 9%.
This gap is too big to ignore. Institutions already know it. And now, thanks to indexes like the Modern Market 100, everyday investors can see it, too.
What This Means for You
Here’s the bottom line:
If you’re still relying on just public stocks and bonds, you’re playing an outdated game.
Morningstar’s new index is a flashing neon sign that says: The future of wealth creation lies in the private markets.
You can’t go out and “buy” the Modern Market 100 just yet — at the moment, it’s a measurement tool, not a tradable product. But the fact that it exists now proves where the financial world is headed.
And that means you should be headed there, too.
How to Get Started
For decades, private markets were locked away — the exclusive domain of millionaires, venture funds, and pension plans.
But today, thanks to new laws and new platforms, everyday investors like you finally have a seat at the table.
At Crowdability, we’ve been focused on this opportunity for more than ten years. Our mission is to help investors like you navigate this new landscape and capture the kinds of returns that used to be off-limits.
If you’d like to accelerate your success in this exciting market, consider joining one of our premium research services. For example, with Private Market Profits, we recommend a new startup investment opportunity to our members each month, and each opportunity has a minimum profit target of 10x.
To learn more, reach out to our VIP customer care team at 1-844-311-3191.
The old “playbook” is fading fast. The investors who’ll thrive in the years ahead will be the ones who embrace the modern markets — today.
Happy Investing
Best Regards,
Founder
Crowdability.com
