Tuesday, June 10, 2008

Shrinking U.S.A.

Below we highlight a chart of world market cap since 2004 along with the percentage of world market cap that US stocks make up. The current value of stocks worldwide is just over $54 trillion according to Bloomberg. US market cap currently stands at a little more than $16 trillion, which puts it at 29.9% of world market cap. While 29.9% still puts the US at more than 3 times the market cap of the second biggest country, Japan, it is much lower than it was just a few years ago. As shown in the chart, US market cap as a percentage of the world has steadily drifted lower over the last four years as global stocks have risen more and the dollar has declined in value. At the start of '04, the US made up nearly 45% of global market cap. Only time will tell if the world will continue to get flatter or if the US will widen its market cap lead again.

Worldmarketcap

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Lunch is for wimps

Lunch is for wimps
It's not a question of enough, pal. It's a zero sum game, somebody wins, somebody loses. Money itself isn't lost or made, it's simply transferred from one perception to another.