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The chart below is one we included in the International section of our 2017 annual outlook report. It’s a historical chart showing trends in the share of global equity market capitalization for the US, Europe, Asia, and the BRICs (Brazil, Russia, India, and China). For the euro area, we used the UK, France, Germany, Switzerland, Sweden, Spain and Italy. For Asia, we used China, Hong Kong, Japan and Taiwan.
The main thing that stands out in this chart is the decline in share for Europe over the last 12 years. Back in 2004, the euro area held the second largest share of world market cap behind the US. Back then, its share was around 23%, while Asia made up just over 15%, and the BRICs made up less than 5%.
Over time, share has eroded for Europe while Asia and the BRICs have seen big gains. While the US still makes up 38%+ of world market cap, Asia now makes up roughly 25%, while Europe only makes up 15%. The BRICs are nearly inline with Europe with a combined share of 14%.