While the US stock market has been rising steadily since 2008, the share of the world stock market has increased significantly during that time. The rise in global equity market values has been driven by the recovery of the global economy. Furthermore, investment abroad is becoming less expensive. The cost of an average loss of 5% to 10% on the US stock market is minimal compared to the costs of investing abroad.
As the frontline of any country’s economy, stock markets are considered a barometer of its economy. In fact, the outbreak of COVID-19 has disrupted the economic conditions of the victims. Moreover, it has seriously affected the global financial markets and economies. Most world stock markets have experienced trillion-dollar losses. In addition, many international financial institutions have lowered their forecasted growth in 2020.
The world stock market is important to all parts of the economy, including companies, wealthy executives, and investors. The stock market is a way for companies to raise capital and make a profit, while it also shows how the economy is doing. It can also be a barometer of the mood of society. When the prices of stocks rise or fall, it shows that a country’s economy is doing well or is facing a crisis.
Despite the recent volatility, the world stock market has seen steady growth in previous months. This was especially true in November, when US-election projections predicting a Biden victory and the release of the COVID-19 vaccine injected optimism into the market. There are currently 19 major stock exchanges in the world, with a combined market capital of nearly $1 trillion dollars. The Nasdaq has more market capital than any other exchange in the world.
