The world’s first stock exchange took place in…
…the early 17th century.
In 2020 we need to know more about stock market statistics.
Now, let’s start with some of the most important points:
AMAZING Stock Market Statistics (Editor’s Pick):
- $80 trillion is the global stock market value.
- The current stock market has been going on for a record 10 years.
- On average, the stock market performs the poorest in September.
- Over 80% of the stock market is automated.
- The US represents about 40.01% of the total global stock market capitalization.
- 52% of US adults have money in the stock market.
- About 10% of US households hold international equity.
The stock market, also known as share market or equity market, is a fundamental component of a free-market economy. Let’s discover why that is with today’s mind-blowing stock market statistics! It will help us see how a free-trade stock market provides a fairly equal chance to everyone.
Fun Fact: A market that is on the rise and economically stable is called a “bull market,” while the opposite is a “bear market.”
“A stock market is crucial to the existence of capitalism and private property. For it means that there is a functioning market in the exchange of private titles to the means of production. There can be no genuine private ownership of capital without a stock market: there can be no true socialism if such a market is allowed to exist.” (Murray Rothbard, “Making Economic Sense,” 2006)
Read on to find out more interesting stock market stats.
1. The total stock market value is $85 trillion.
(Source: Liberated Stock Trader)
The world’s stock exchanges have a capitalization of $85 trillion USD. This is an incredible increase of 320% since 2009. Back then their value was $25 trillion.
A big role in that plays the US, of course. You’re probably wondering how much is the US stock market worth exactly?
Wonder no more!
If you combine the US stock exchanges (NYSE and NASDAQ), you get 39% of the entire global stock market value, or $31 trillion. Together, they are bigger than the next 7 exchanges combined (Japan, China, Euronext, London, Hong Kong, and Canada). The US equity market size is absolutely impressive!
2. The current stock market has been going on for a record 10 years.
And we’re still counting! That’s quite a big achievement if you take a look at bull markets’ history and previous data. They have lasted on average about 4 years and a half.
So 10 years is not only more than double that time, but also the longest in American history. Investors witnessed some amazing price hikes during this time.
It’s certainly a reason to celebrate! The current market, which follows a recession, is growing slowly but steadily and so far is maintaining this pace well.
Record-low interest rates and high corporate profits are the reason for that. They’ve come mostly from the ever-growing tech industry. Apple, Amazon, and Google have joined Microsoft as the most valuable corporations globally, helping the market quadruple its capitalization since the financial crisis. They are the key figures that contribute to the mind-blowing total value of the US stock market.
3. Microsoft was the leading corporation in market capitalization up until October, with a value of over $1 trillion.
In October 2019, Microsoft had a market cap of $1.063 trillion. And Apple beat it with $1.065 trillion, breaching the $1 trillion threshold for the first time. Exciting!
In fact, Apple was the first US company to break it in August 2018. Then, since late April this year, Microsoft had been on the top.
It’s a never-ending competition where nothing is constant and that’s why it’s fun to watch!
4. Share repurchases increased by 22% in Q1 2019.
Since the beginning of 2019, the total value of the stock market increased by more than $5 trillion. This amazing growth shows the widening gap between private investors and corporations. Share repurchases this year already make up $270 billion, which is huge compared to the amount of money drawn from mutual funds.
5. The Information Technology industry is the leader with 16.31% of the global market shares.
(Source: Liberated Stock Trader)
Financials follow with 15.78% and Health Care with 12.59%. Surprisingly, Real Estate is at the bottom with 3.24%. However, it is among the fastest-growing sectors with more than 20% growth, following behind technology (25% increase) and industrials (23%). Take note of these key statistics for stocks if you’re interested in investing in certain industries!
6. The US represents about 40.01% of the total global stock market capitalization.
(Source: Seeking Alpha)
According to 2018 data, Japan is second with 7.59% and China follows with 7.51%.
The US global market cap hasn’t been this high since 2005. The strong dollar, gains in American equities, and an ongoing decline in most international equity markets contribute to its current state.
7. On average, the stock market performs the poorest in September.
Is it a seasonal depression? Who knows. The September Effect is a curious phenomenon of the financial world everywhere and it is not influenced by any market events or news. Since 1950, both the S&P and the Dow Jones have averaged a slight decline in September. The same is the case with NASDAQ since its beginning in 1971.
However, recent stock market statistics show this effect has begun to disappear. Good!
8. Stock market declines of 5 to 10% usually take a month of recovery time.
(Source: Guggenheim Investments)
According to stock market crash statistics, the most common market declines are easiest to recover from. Logically, more major setbacks take considerably longer.
Usually, a drop of 10-20% takes 4 months, while a 20-40% decline leads to 15 months of recovery time. The most serious market declines we’ve seen were more than 40%! They last about 22 months but take about 58 months to recover from and can be catastrophic.
The deeper the stock market decline, the longer the recovery – no surprises here.
Now, moving on to some…. *drumroll*
Stock Ownership Statistics
Let’s see how many people invest in the stock market.
9. 52% of US adults had money in the stock market in 2016.
(Source: Liberated Stock Trader)
If you wonder what percentage of Americans own stocks, the answer is 52%. That seems a lot but compared to previous years, it’s considerably less. The 2000 Dotcom crash and the 2007 financial crisis have damaged people’s trust in the markets. That’s why the percentage of US adults invested decreased to 52% in 2016, whcih is a multi-decade low.
10. Since 1989, middle-class households have lost more than half of equity holdings.
Here’s one of the negative stock market statistics. With each year, the gap between the classes is growing at a worrying pace. Just look at this comparison: in 1989, middle-class citizens owned 15% of all household equity holdings. In 2016, they held only 5%.
That’s quite alarming.
Meanwhile, the equity holdings of the top 0.1% of the wealthiest citizens rose about 5% at that time. It’s clear the US bull market is far from perfect and is easily threatened by this inequality.
Stock Trading Statistics
11. About 10% of US households hold international equity.
That’s one of the positive stock statistics. Since the Great Recession in 2008, the global equity share Americans hold is rising. During the last decade, it has gone up by almost 15%. That’s thanks to economic recovery and more affordable ways to invest internationally.
12. Over 80% of the stock market is automated.
Automation is becoming increasingly popular in all kinds of industries, as it has many advantages. It’s not surprising that according to stock market statistics from 2018, the majority of US trades are done by machines.
Computers use advanced mathematical models to make quick trading decisions. This creates a market, which is rather focused on short-term movements and sell-offs than long-term goals. We’ll see whether that’s a good thing or not.
More Key Stock Market Facts
13. Warren Buffet is the most successful investor worldwide in 2019.
The leader of Berkshire Hathaway is the current wealthiest investor globally. His net worth right now is $82.5 billion. Can you imagine?!
Behind him are Joseph Safra with $25.2 billion and Jim Simons with $21.5 billion. It’s clear they have a long way to go before reaching his level.
Buffet’s company owns the most expensive stock in the world. Berkshire stock is worth $305,085 per share. What makes it so valuable is that they never did a stock split, so the worth of a single share was never devalued.
This massive conglomerate owns some big names like Dairy Queen, Duracell, and Geico. Berkshire Hathaway also has huge stakes in giants like Coca Cola and American Express.
14. There are 47 major stock exchanges in the world.
Have you ever sat late at night, alone in your bed, wondering…
How Many Stock Exchanges are There?
There are 7 major stock exchanges in the Americas, 14 in the Asia Pacific, and 26 in Europe, the Middle East, and Africa.
23 stock exchanges are in developed countries, while 24 are in emerging countries.
So how many companies are in the stock market then? The answer is about 47,383.
15. The percentage of retail investors in the stock market in China is 75%.
(Source: American Century Investments)
While the US stock market is dominated by institutions, the Chinese one is dominated by retail investors. They hold over 75% of the market, excluding the shares held by insiders.
Retail investors are prone to irrationality and emotional buy and sell decisions. This creates heightened volatility and often makes individual stocks mispriced, thus creating opportunities for skilled active managers.
So what is the stock market doing today?
At the time of writing, most stock markets are at an all-time high.
Here are some of the most active market movers:
16. General Electric Co is up by 0.17%, Ford Motor Co by 2.07%, and Nordstrom Inc is leading with +10.58%.
Meanwhile, Hess Corp is down by 3.80%, leading the “Losers” group. It is followed by Constellation Brands Inc with -2.90% and Coty Inc with -2.70%.
17. Current US stock market numbers show positive change by up to 0.39%.
Currently, NASDAQ is up by 0.16%, S&P by 0.22%, and Dow leads the way with +0.39%.
According to the stock market tracker MarketWatch, the majority of US, European, and Asian stocks are green. That means they’re doing well.
However, the Gold is down (about -0.35%) and has been worryingly going that way for a while now. The Silver is following suit by -0.76%.
In Asia, only Singapore is behind with -0.16%.
Currently, the Euro is a bit down by 0.04%.
18. The Cryptocurrencies are all in red, down by up to -5.89%.
Crypto is generally not too stable and often fluctuating. Right now, Bitcoin USD is at -4.21% and Ethereum USD at -4.66%.
However, these values quickly change and sometimes the bull market is truly unpredictable.
What’s important is that stock market averages generally show positive growth.
Let’s conclude with some curious facts.
Fun Stock Market Facts
It’s trivia time!
19. Every day at the New York Stock Exchange begins with the ringing of a bell at 9:30 am.
First, they used a Chinese gong for that. However, in 1903, it was replaced with an opening bell. Since then, the opening bell announces the beginning of a new trading day. This is now a popular and iconic daily event. One of the most-watched in the world, in fact!
That’s also thanks to President Ronald Reagan who asked to ring the bell in 1985 as part of his reelection campaign. Since then, celebrities, big corporation leaders, and more have been drawn to it.
Today, it is a great honor (and a way to gain popularity) to be allowed to ring the bell. Ding ding ding!
20. In 1943, women worked on the New York Stock Exchange for the first time.
(Source: CR Fashion)
Unsurprisingly, the NYSE was open only to men during the first half of the 20th century. Then, during World War II, there was a shortage of male workers. For the first time, women were allowed to cross the mysterious gates and work on the trading floor.
However, that was only temporarily – they were banned again in 1947. Rude!
Finally, in 1965, Muriel “Mickie” Siebert bought a seat on the exchange and became famous as the “First Lady of Wall Street.” She was the only woman working at the NYSE for the next decade, earning recognition and a room on the seventh floor named after her. Women power!
Now that you’ve read all these key and fascinating facts about the stock market, you can clearly see how huge it is. Now you know the bull stock’s global value, how many US citizens have joined the market, how much money is in the US stock market, and even which month is usually the worst for the market!
You can take advantage of all these useful stock market statistics when investing. Or just when you want to impress your friends and colleagues with your newfound knowledge. You’ll be the star of the party!
Meanwhile, we’ll continue following the stock market trends and the global economy so that we can always present to you the most recent information. We’ve got your back!
See you, guys, on SpendMeNot.com.