Global Stock Rally: World Market Cap Reached Record High In November

by: Mark J. Perry

The Paris-based World Federation of Exchanges (WFE), an association of 58 publicly regulated stock market exchanges around the world, recently released updated data on its monthly measure of the total market capitalization of the world's major equity markets through the end of November. Here are some highlights:

1. As of the end of November, the total value of equities in those 58 major stock markets reached $63.4 trillion and set several milestones. First, global equity value reached a new all-time record high in November, and second, exceeded for the first time the previous all-time record monthly high of $62.8 trillion for global equity valuation in October 2007; several months before the global economic slowdown and financial crisis started, which caused global equity values to plummet by more than 50% (and by almost $34 trillion), from $62.8 trillion at the end of 2007 to only $29.1 trillion by early 2009 (see chart below).


2. Global equities gained slightly more than $700 billion in value during the month of November and increased by 1.1% from October.

3. Compared to a year earlier, November's world stock market capitalization increased by 20.1%, led by a 23.0% gain in the Americas, followed by increases of 21.1% in the Europe-Africa-Middle East region and 15.9% in the Asia-Pacific region.

4. By individual country, the largest year-over-year gains for November were recorded in Greece (121%), Ireland (71.3%), China (50.4%), UAE (39.5%) and Japan (35.3%). In the US, the NASDAQ capitalization increased by 31.3% and the NYSE by 27.8%. The biggest losses in equity value over the last year (measured in US dollars) were posted in Peru (-21.7%), Turkey (-17.4%) and Indonesia (-17.3%).

Compared to the recessionary low of $29.1 trillion in February 2009, the total world stock market capitalization more than doubled (118% increase) to the current level of $63.4 trillion in November, more than recapturing all of the global equity value that was lost due to the severe global recession and the various financial, mortgage and housing crises in 2008 and 2009. The global stock market rally over the last five years has added back more than $34 trillion to world equity values since 2009, and demonstrates the incredible resiliency of economies and financial markets to recover and prosper; even following the worst financial crisis and global economic slowdown in at least a generation.