World and Country Market Cap

From its peak in October 2007 to its low in early March, global equity markets fell $37 trillion from $62.5 trillion to $25.5 trillion. At the low, the value of all public companies worldwide fell 59%! Since the March 9th low, global market cap has now risen by $9.5 trillion back up to just over $35 trillion.

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Below we highlight all countries whose market cap makes up more than 1% of world market cap. As shown, the US accounts for 30.64% of world market cap, which is more than four times Japan in 2nd place. China ranks 3rd at 7.64%, followed by the UK, Hong Kong, and France. Interestingly, the BRIC countries (Brazil, Russia, India, China) account for 13.53% of world market cap, while the UK, France, and Germany account for 13.37%. Maybe it's time for the BRICs to no longer be considered emerging markets.

Since March 9th, major US stock indices are up 25%, but since other countries are outperforming, the US' market cap as a percentage of world market cap has actually fallen about 75 basis points. It initially spiked in the early days of the rally, implying that the US sparked the global rebound, but as the rally progressed, investors have spread their sights elsewhere.

Comments

[Greyowl:]

As I noted in the related article, this may signal buy for US stocks as other countries' stocks may be running out of steam sooner and start climbing slower.

Countries like China and Russia not only implemented twice bigger bailout packages (relative to their GDPs), but faster too. And they have had much more control over their financial systems, not to mention trade surpluses and, hence, hefty reserves.

The US bailout is barely implemented, except the financial sector. Sure, the US is lagging. And its growth as the leading developed economy in the world is slower.

May 20 09:35 AM