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The World’s Stock Markets

February 2, 2024 | Posted in: Insights, Investing

The following excellent graphic depicts the relative size of the world’s major stock markets over the past 50 years. It was provided by Visual Capitalist which produces wonderful visualizations on a wide variety of subject matter areas.

As indicated, the U.S. now represents 58.4% of the global stock market dwarfing all of the other individual markets. However, it was not always this way. Note that the size of the Japanese market briefly exceeded that of the U.S. in 1989 only to shrink to second position today at 6.3%. Second, the UK market has also shrunk from about 10% of the world market in the early 2000’s to 4.1% today. Third, while China is the world’s second largest economy, its stock market only represents 3.7% of the world market, materially less than the values of Japan and the UK. Finally, it will be interesting to see if the “Other” category becomes more heavily weighted as a result of the significant population growth in some emerging countries that may well lead to shifts in relative economic growth.