Credit: Shutterstock photoBy Ronald Surz :
Our data on global markets starts in 2000. At that time, America was half of the $30 trillionglobal market but since then it has shrunk somewhat to 43% of the current $50 trillion market. Similarly, Europe ex the UK has shrunk from being 18% of the world to 15%. Offsetting these declines, Emerging Markets and Asia ex Japan have increased their market shares. We classify China as Asia rather than Emerging Market. Asia ex Japan has grown from 5% of the world to 15%, while Emerging has grown from less than 1% to 6%.
America's place in the World is supplying technology and healthcare. By contrast, as shown in the next graph, non-US countries supply materials, and have a large allocation to phones and utilities, a local phenomenon.
Who Cares
It is indeed a world economy so it's helpful to know its composition. We have choices for our investments, and knowing the location of supply is important.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
