A Country's Stock Market Doesn't Represent A Country's Economy Anywhere In The World
Advertisement
JP Morgan
Advertisement
One big reason for the discrepancy is that many of the companies that make up a stock market engage in business overseas.
This chart from JP Morgan highlights just how much of a country's stock market's revenues are generated locally.
"Across major developed markets, the domestic share of revenues ranges from an estimated 75% in Japan to 28% in the UK," JP Morgan analysts note. "Generally, for DM equities investing in fast-growing developing economies, the effect is to boost revenues by as much as 75 bps; the reverse is true for emerging markets."
Keep this in mind before you bet on a country by betting on its stock market.
Advertisement
Advertisement
- Volumes up, values down: India's deal-making marks notable shifts in April
- 10 best kid-friendly summer vacation destinations in India
- “Are you accusing me of bullying the US?” jokes EAM S Jaishankar when asked about India-US relations
- As rain and snow events become more intense, so could our earthquakes, study finds
- India-EU FTA 'most difficult, complex' due to non-trade issues: EAM Jaishankar