Stock Markets Are Driving a New American Century
The US’s growing financial dominance may be making up for its declining influence in other realms.
A lot to clap about.
Photographer: Michael Nagle/Bloomberg
The worldwide dominance of US equities is increasingly obvious. Of the top 10 components of the MSCI global stocks index — which itself now consists of about 70% US stocks — eight are US technology companies. The S&P 500 has breached the 5,000 level. On most days, Apple or Microsoft alone is more valuable than the entire stock markets of major European countries. By one estimate, last year publicly traded US firms accounted for 44.9% of global market capitalization.
All these gaudy numbers raise a question: Is the world on the cusp of a new American century, at least in the corporate realm? The answer is a qualified “yes.”