By Ronald Surz :
Our data on global markets starts in 2000. At that time, America was half of the $30 trillion global 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.
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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