World Market Capitalization

Perils of Market Timing
Perils of Market Timing
June 15, 2016
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World Market Capitalization

World Market Capitalization

The cartogram above displays countries by the ratio of their stock market value to the world’s total market value (free-float adjusted).

People invest in various countries’ markets based on factors such as population, GDP, and exports, but more generally, investors gravitate to markets offering the optimal risk-adjusted expected returns. Highlighting this trend of efficient markets, the cartogram provides a measure of a given country’s investible opportunity in relation to that of the world’s opportunity. Therefore, rather than analyzing individual economic factors, one may observeserve the aggregate effect of those factors, yielding a more disciplined and strategic approach to global investing.

As investors move capital to more attractive markets, the ratios of the countries displayed in the cartogram will change. Consequently, Israel is now classified as a developed market, and Colombia, Egypt, and Peru are now considered to be emerging markets.

World Market Capitalization

Samuel J. Sweitzer
Samuel J. Sweitzer
Founder and President of Anson Analytics, Inc. - an RIA firm specializing in Research Based Investment Management for Corporate Retirement Plans and Private Investors. Sam is a Chartered Financial Analyst (CFA) and currently serves as Anson's Chief Investment Officer. Sam resides in South Metro Atlanta with his wife and two daughters.

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