Home > financial markets > World Stock Market Capitalization: 4 graphs

World Stock Market Capitalization: 4 graphs

1. World Stock Market Captialization 1980 – 2007
2. World Stock Market Captialization 1996-  2010
3. Dow Jones World Stock Index 1998 – Oct 24 2008
4. Stock Market Capitalization Around the World 

 

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Categories: financial markets
  1. November 30, 2010 at 3:28 pm

    Ok, I’ll bite: What’s it mean? Especially the last chart? Two things pop to my mind, but I work from “texts” by economists who have already reduced complexities to simplicities that I can grasp.

    1. Steven Waldman is from whom I first got the notion (not that he invented it): Asset inflation is (necessarily?) a symptom of the unequal distribution of incomes. Since the rich can only consume so much, they buy assets (claims on future flows), and that drives up prices. I also once speculated, since I think in public, that might the mostly steady increase in stock caps be at lest in part the result of 401Ks? That would be demand pull – though one contrived by a tax code …

    2. Walter Williams is the “conservative” economist whose ancestors were slaves here in America, and teaches at George Mason University, Grove City College – places I think of as “Austrian”. He wrote in his serialized column yesterday that Americans should not be concerned about our balance of trade:

    http://www.columbiatribune.com/news/2010/nov/29/dont-worry-about-the-trade-deficit/?commentary

    He first claims that Capital Accounts offset Current Accounts – though he conflated that in theory with that in practice. I don’t know if that was just him being sloppy, or dishonest. He then wrote:

    “…there are other ways for capital inflows, or investment in the United States, to occur. With the dollars foreigners earn selling us goods, they purchase U.S. stocks, bonds and real estate.”

    So, what do the charts mean?

  2. Podargus
    November 30, 2010 at 6:37 pm

    The charts are a measure of a huge bubble.What is the inevitable fate of bubbles?

  3. Jon Cloke
    November 30, 2010 at 8:45 pm

    They also signify a fundamental change in what we understand by capital..

    • December 1, 2010 at 12:56 pm

      Ok, but wouldn’t that vary whether, say, one has bought stock in a company that actually makes things (solar panels?) or one has bought stock in a company that manages funeral homes (I learned of such a company yesterday – I watch business “news” programs) or stock in a finance company – like Goldman Sachs?

  4. December 1, 2010 at 3:21 pm

    That pie chart could be aptly described as a “pie in the sky”

  5. A.J. Sutter
    December 2, 2010 at 1:31 pm

    Some other good data to graph would include the aggregate annual turnover of equities markets and the proportion of it that went to new capital (the textbook function of equities markets). From the last data I saw from World Federation of Exchanges, aggregate turnover is in excess of global GDP, but the proportion of that which goes to new capital is oscillates around 1%.

    • December 2, 2010 at 3:02 pm

      “…the aggregate annual turnover of equities markets and the proportion of it that went to new capital (the textbook function of equities markets)”

      Where the proportion that DID NOT would/could be thought of, by ordinary people, as “churning”?

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