The Global Market Landscape: Insights and Observations
In the ever-evolving world of global markets, understanding the dynamics of market capitalization is crucial for investors seeking to make informed decisions. A recent report from Goldman Sachs offers valuable insights into the distribution of global market cap across different regions. The data reveals a striking dominance of the US market, which continues to command a significant portion of the global market cap.
US Market Dominance: A Key Takeaway
The chart illustrates that the US market has consistently maintained a substantial share of the global market cap over the years. Despite fluctuations, ranging from 30% to 65%, the US market’s influence remains formidable, typically hovering around the 40% mark. This observation underscores the importance of considering exposure to US markets in one’s investment portfolio.
Emerging Trends: The Rise of China and India
Another notable trend highlighted in the report is the rapid expansion of the Chinese and Indian markets in recent years. While Japan experienced a surge in market cap in the late 1980s before contracting, China’s market witnessed significant growth post-2008. Similarly, India, once a minor player on the global stage, is now emerging as a significant market participant, with its market cap gradually increasing.
India’s Growth Potential: A Cause for Optimism
Looking ahead, there is optimism surrounding India’s potential to further expand its market share in the coming decade. Even a modest increase from 2-3% to 5-10% could attract substantial global investment flows. With South Asia, particularly India, projected as high-growth markets, opportunities for investors abound. Despite concerns about overvaluation, the prospect of sustained growth and market expansion remains promising.
WeekendInvesting Strategy Spotlight
Reflecting on the best performing stocks from Nifty 50 in FY 2024
We all know that Nifty 50 did reasonably well in FY 2024 clocking 27% gains.
But did you know that there were some stocks within Nifty 50 that clocked more than 100% during the same period ?
TATA MOTORS : 130% (1.78% weight in Nifty 50)
BAJAJ AUTO : 123% (1.05% weight in Nifty 50)
COAL INDIA : 116% (1.19% weight in Nifty 50)
ADANI PORTS : 114% (1.04% weight in Nifty 50)
NTPC : 102% (1.68% weight in Nifty 50)
What if you could invest only in the top 10 strongest stocks within Nifty 50 and ignore the ones that have no momentum ?
What if you could be bias free in terms of weightage allocation and allocate a standard 10% weight to all 10 strongest stocks ?
What if you could ride winning stocks for long periods of time and dump the losers at the earliest sight
This is what Mi India Top 10 aims to do.
Use code FY2025 to subscribe to Mi India Top 10 at a flat 25% discount.
If you have any questions, please write to support@weekendinvesting.com
