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We continue to monitor the drop in the share of world market cap that the US stock market makes up.  It has been falling like a rock all year, and it dipped another 46 basis points since the start of August.

Below is a chart showing the US’ % of world stock market cap going back to 2003 (blue line).  We’ve also overlaid a chart of the S&P 500 over the same time period.  There’s lots to glean from the historical trend going back to the turn of the millennium, but we want to focus on the last two years.  As you can see, even though the S&P 500 has blown out to new all-time highs on a regular basis since the end of 2016, the country’s share of total stock market cap has been falling.  The reasons?  Other countries have seen their stock markets perform even better than the US, and the US Dollar has been falling.

While President Trump can claim that the stock market has done exceptionally well since he was elected, he’s actually overseen a huge loss in the US’ share of total world stock market cap.  When grading a Presidency, you could argue that the latter is actually more important.

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