U.S. Stocks Account for More Than 50% of DM Market Cap, A 15-Year High
The aggregate market cap of our entire developed world index, GKCI DM (black line), has remained mostly in the range of $35-40T over the last few years, after surpassing the $35T level (previously reached in 2007) in late 2013. DM Americas stocks (dark blue line) make up the majority of the aggregate market cap, contributing ~$22T to the total, while DM EMEA (light blue line) accounts for around $10T (~26% of the total) and DM Asia (red line) has remained steady around $5T (representing ~15% of the total).
There is a clear difference in trend, however, as DM Americas market cap, in absolute numbers, has nearly tripled since 2009 lows and remains well above 2007 highs. DM Americas share of the total market cap has subsequently risen to near 60%–a high not seen since 2000.
As we might expect, DM Americas is dominated by U.S. shares which make up the bulk of the group (~90%).
Not only do the U.S. shares account for an overwhelming majority of the DM Americas group, but a look at the one year difference in market cap shows that U.S. shares (in spite of a rough start to 2016) have made consistent gains in nearly every month going back to October 2009 while Canadian shares suffered pronounced losses in 2012 and again in 2015.