Punching Above Our Weight

Punching Above Our Weight

One of the unexpected results of the recent rally in American stocks, combined with a market malaise throughout the rest of the world, is that U.S. companies, in aggregate, now make up more than 40% of the global market capitalization of all publicly-traded stocks.  This is up from just over 32% ten years ago.

What makes this more remarkable is that two-fifths of the market opportunities have been generated in a country that makes up just 6.2% of the world’s population.

Japan’s total market cap ranks in a distant second place, with 7.59% of the total—down from 8.02% ten years ago.  But Japan is still punching above its weight; its population represents 1.66% of the world’s total.  Similarly, the United Kingdom’s publicly traded companies make up 4.49% of the world’s total (down from 6.83% ten years ago), while England’s total population is just 0.86% of all the people in the world.

Among other big disparities:  China’s publicly-traded companies make up just 7.51% of the world’s total, even though China makes up 18.2% of the world’s population.  The disparity is even greater in India, whose companies make up 2.83% of global market cap despite India representing 17.5% of the world’s population.



Provided by Storey & Associates, a Registered Investment Advisor located at 1360 South Main Street, North Canton, Ohio offering Financial Planning and Investment Management Services. Content written by Bob Veres. For more information, please contact us at (330) 526-8944 or info@storeyassociates.com.

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