The chart shows the many periods of business expansions in the US since World War II. The current expansion that began during the depths of the GFC in 2009 is one of the longest on record lasting over 100 months. The previous long bull market was during the golden age of hi-tech from 1991 to 2001 when all things technology including dot coms were hot.
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Source: Lord Abbett
The US equity market reached a new record high since the Global Financial Crisis(GFC) in July this year. Since that peak the market has been wobbly to say the least. None of the other global markets have reached a peak this year. In fact, some markets like Russia, Brazil and Canada reached their peaks since GFC back in 2011. Decline in commodities and other factors have not helped these equity markets attain a new peak.
The following table the market peaks for G-20 countries since the GFC:
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Source: Crescat Capital LLC
The following is a neat chart compares the US with other markets in terms of key factors like populations, GDP, stock market capitalization and bonds outstanding.
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The US accounts for just 5% of the world population. But generates 15% of the global GDP. In terms of stock market capitalization it is even more astonishing. At 55%, the US equity markets account for over half of the global market capitalization.
For emerging markets it is exactly the opposite. While they markets are home to 84% of the world’s population, they represent just 12% of the global stock market capitalization.