When the American stock market coughs, the rest of the world catches a cold.
The Dow Jones Industrial Average is set to end the year down more than 6%. European stocks just had their worst year in the last decade. The Asian markets lost a combined $5 Trillion. And emerging markets are off more than 20% over the year.
Given all the market volatility and eye-popping headlines, we started to think about the relative size of stock markets. If the Asian bourses lose $5 Trillion, how does that stack up against the American market?
We turned to the World Bank for a unique set of figures tabulating the market capitalization of all domestically listed companies in every country. We created a stacked bubble chart comparing countries and continents, letting you easily grasp the relative size of markets around the world.
The America market clearly dominates the world at over $32.1T at the end of 2017. North America has more than $8 trillion in domestic market capitalization than all of Asia, or about 45% of the entire value in all the world’s stock exchanges. The combination of value in American and Asian markets comes out to an astonishing 79% of the world’s bourses. Add in the Europeans, and that figure climbs past 92%.