With the drop in the US dollar and the outperformance of international stocks, the US stock market is losing share versus the rest of the world even though it’s in rally mode. While the S&P 500 is up 10% year-to-date, the United States’ stock market cap as a percentage of total world stock market cap has dropped from 37.70% all the way down to 35% so far this year.
Just after Trump’s victory last November, the US quickly gained a lot of market cap versus the rest of the world, but that gain has more than evaporated at this point. Since the election, the US has now lost more than one and a half percentage points of world stock market cap share. That’s the opposite of what Trump was hoping for. So even though the President has been touting the stock market’s gain lately, when you look closely, it has actually lost share versus the rest of the world since his victory.