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M* Are You Devoting Too Much Time (And Money) To Niche Asset Classes?
Hmmmm. Emerging markets contribute over 49% (and climbing) of global GDP but only 9% of global market cap, according to FTSE. The US contributes 19% (and falling) to GDP but 51% to global market cap.
I suppose if you assume that the stock market is efficient and investors are rational, then you would indeed assume that we were worth every penny (and more) of what's invested in our market.
"I suppose if you assume that the stock market is efficient and investors are rational"
Well, if I'm supposed to assume that, I might as well go whole hog and believe that capitalism is capable of efficient self-regulation, and that the financial market is already over-regulated, as has been proposed elsewhere on MFO.
(But that's an entirely different barroom brawl, as I'll bet you're aware.)
Comments
Hmmmm. Emerging markets contribute over 49% (and climbing) of global GDP but only 9% of global market cap, according to FTSE. The US contributes 19% (and falling) to GDP but 51% to global market cap.
I suppose if you assume that the stock market is efficient and investors are rational, then you would indeed assume that we were worth every penny (and more) of what's invested in our market.
David
Well, if I'm supposed to assume that, I might as well go whole hog and believe that capitalism is capable of efficient self-regulation, and that the financial market is already over-regulated, as has been proposed elsewhere on MFO.
(But that's an entirely different barroom brawl, as I'll bet you're aware.)
After reading that cut and paste there was no need to read the link.
Drivel.