Fascinating charts from Bespoke. It shows of how global stock markets have "V"-igorously bounced.
This from Bespoke, ``At its peak in 2007, total world market cap was $62.57 trillion. By the lows this March, world market cap had dropped to $25.6 trillion! That's a loss of $36.97 trillion in stocks globally. Since the March lows, however, world market cap has risen $18.31 trillion back up to $43.9 trillion.
Again from Bespoke, ``In the US, market cap has risen $4.88 trillion from its low of $8.09 trillion in March. The peak in total US stock market value was $19.14 trillion in 2007, and the current value of all US stocks is $12.97 trillion. The US accounts for 29.5% of total stock market value in the world."
Additional comments:
1) It has been a rising tide lift all boats phenomenon which clearly has been a manifestation of liquidity driven markets.
2) global stock markets are about 30% away from full recovery.
3) US markets still account for one third of stock market value, albeit on a downtrend. This phenomenon is similarly seen in developed economies.
In contrast, emerging markets continues to capture a larger share in the global market cap due to secular forces which has been punctuated by the recent crisis.
According to Manas Chakravarty of livemint, ``The decline in the share of the global pie of the advannced economies is not just due to the current crisis but is a long term trend. According to projections from Credit Suisse, the percentage share of global consumption of the US will decline from 30.2% in 2007 to 20.8% by 2020. In sharp contrast, the share of Chinese consumption is projected to improve from a mere 5.3% of global consumption in 2007 to 21.1% by 2020. India’s consumption, which was 2% of global consumption in 2007, is forecast to rise to 5.3% by 2020. By 2020, according to the Credit Suisse forecasts, China will be the largest contributor to global consumption and India will be the fourth largest."
I think it is more than that. Asia and emerging markets likely move towards less dependence on the banking sector and expand utilization of the capital markets to deepen the financing intermediation within the economy and the region.
Of course there is also the issue of the divergent impact from inflationary policies on developed economies relative to emerging markets and Asia.
This from Bespoke, ``At its peak in 2007, total world market cap was $62.57 trillion. By the lows this March, world market cap had dropped to $25.6 trillion! That's a loss of $36.97 trillion in stocks globally. Since the March lows, however, world market cap has risen $18.31 trillion back up to $43.9 trillion.
Again from Bespoke, ``In the US, market cap has risen $4.88 trillion from its low of $8.09 trillion in March. The peak in total US stock market value was $19.14 trillion in 2007, and the current value of all US stocks is $12.97 trillion. The US accounts for 29.5% of total stock market value in the world."Additional comments:
1) It has been a rising tide lift all boats phenomenon which clearly has been a manifestation of liquidity driven markets.
2) global stock markets are about 30% away from full recovery.
3) US markets still account for one third of stock market value, albeit on a downtrend. This phenomenon is similarly seen in developed economies.
In contrast, emerging markets continues to capture a larger share in the global market cap due to secular forces which has been punctuated by the recent crisis.
According to Manas Chakravarty of livemint, ``The decline in the share of the global pie of the advannced economies is not just due to the current crisis but is a long term trend. According to projections from Credit Suisse, the percentage share of global consumption of the US will decline from 30.2% in 2007 to 20.8% by 2020. In sharp contrast, the share of Chinese consumption is projected to improve from a mere 5.3% of global consumption in 2007 to 21.1% by 2020. India’s consumption, which was 2% of global consumption in 2007, is forecast to rise to 5.3% by 2020. By 2020, according to the Credit Suisse forecasts, China will be the largest contributor to global consumption and India will be the fourth largest."
I think it is more than that. Asia and emerging markets likely move towards less dependence on the banking sector and expand utilization of the capital markets to deepen the financing intermediation within the economy and the region.
Of course there is also the issue of the divergent impact from inflationary policies on developed economies relative to emerging markets and Asia.
