This document is directed at investment professionals and qualified investors (as defined by MiFID/FCA regulations).
This year we celebrate the 243rd birthday of the U.S. Since its founding the U.S. has beenrenowned for its democracy and capitalist system that embraces change and innovation. These factors have been the catalysts of the U.S.’s robust stock market, which outstrips that of any other nation worldwide.
- Of the approximately $85 trillion in global stock market capitalization, the U.S. represents nearly 40% or over $32 trillion. This is significantly more than the roughly 25% of worldwide GDP for which the U.S. accounts.
- The U.S. share of global market capitalization is more than twice that of its nearest competitor, China. More impressive is that the U.S. commands more than two thirds of global market capitalization in growth-oriented industries such as software and biotechnology.
- But will the U.S. remain dominant in the future? The U.S. has one very strong advantage: innovation. The U.S.’s share of research and development spending among U.S. public companies is higher than its share of market capitalization—a sign that the U.S. may likely continue to lead in growth and change.
Alger on the Money