• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Roots of Wealth

Roots of Wealth

Roots of Wealth Blog with Dan and Maureen Crimmins

  • Home
  • About
  • Events
  • Firm Website
  • Free Guide
  • Videos
  • (201) 785-7660
  • Email

Welcome to Roots of Wealth. A financial blog focusing on life, planning, and interesting information worthy of sharing with you.
Roots of Wealth is proudly managed by Crimmins Wealth Management Located in Ramsey, NJ.
Visit Our Website

A Different Perspective on Global Stock Markets

November 16, 2015 by Dan Crimmins Leave a Comment

Sometimes seeing something from a different perspective helps bring additional insight to a subject.  Below is a view of the world – not from the traditional view according to land mass that we are all familiar with from grade school.  This graph demonstrates the size of the countries according to the value of the companies based in the countries that they are publicly traded.

This view helps educate on 2 fronts:  one by showing the continued strong value of U.S. based companies in comparison to the other international companies.  This strength  is demonstrated in the graph by the “land mass of the United States” being a little over half the global land mass; and second, the need to own international companies in one’s portfolio to capture the other 48% of global company value.

Some other things also jump out:  Our 2 large geo-political foes seem quite small:  China and Russia.  This represents how most of the companies in these countries are not available to private investors.  Sometimes it helps to take a look at the world through an unconventional perspective when thinking about the size of things.

The map from Bank of America Merrill Lynch’s Chief Investment Strategist Michael Hartnett shows the world according to free-float equity market capitalization (market cap) in billions of dollars measured by the MSCI.

Free-float methodology market capitalization is calculated by taking the company stock price and multiplying it by the number of shares readily available in the market.  MSCI‘s has been at the forefront of index construction and maintenance for more than 40 years, launching its first global equity indexes in 1969.  These indices are used by institutional money managers to benchmark their performance worldwide.

The graph highlights that the United States, with a market cap of $19.8 trillion, is the biggest market and represents 52% of the world’s market cap.  Japan is in second place at $3 trillion, followed by the UK at $2.7 trillion, and then France at $1.3 trillion.

Have A Wealth Management Question? Click Here To Ask Dan

Check out the whole map below.

Global Map by Market Cap

 

 

 

 

 

 

 

 

 

Remember this perspective when you hear the news discussing the “crisis” in Greece or some other small foot-print country.

If you enjoyed this article,  CLICK HERE to subscribe to free updates from “Roots of Wealth”.

Share this:

  • LinkedIn
  • Twitter
  • Buffer
  • Email
  • Print
The foregoing content reflects the opinions of Crimmins Wealth Management and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. All investing involves risk, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful.

About Dan Crimmins

Dan Crimmins, co-founder of Crimmins Wealth Management, is a financial coach and fee only financial planner. Have a financial question? ASK DAN

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Join Our Newsletter
Top Financial Advisor Blogs And Bloggers – Rankings From Nerd’s Eye View | Kitces.com

Topics

Footer

1000D Lake Street
Ramsey, NJ 07446

Phone: (201) 785- 7660
Email: dan@crimminswm.com
or maureen@crimminswm.com

  • Home
  • About
  • Events
  • Firm Website
  • Free Guide
  • Videos
  • (201) 785-7660
  • Email

Important Consumer Disclosure from Crimmins Wealth Management

Copyright © 2022 Roots of Wealth | Site Design by 3200 Creative

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.