What's the total global stock value in the U.S.?
Traders work on the floor of the New York Stock Exchange moments before the closing bell on Oct. 27, 2011 in New York City.
Jeremy Hobson: Now it's time to dissect the numbers with a quiz about
global stock markets, so let's bring in our quizmaster Stephen Richter. He's editor-in-chief at TheGlobalist.com. Good morning.
Stephan Richter: Good morning, Jeremy. Are you ready for today's quiz?
Hobson: I am ready.
Richter: All right. Everybody knows Wall Street, and we also hear every morning when we wake up or when we go to bed about the stock markets in other countries -- Germany, U.K., China.
What about our home market? What percentage of the world's total stock market capitalization -- all stocks' value -- still is in the United States today? Is it A) 70 percent; B) is it just about half, that would be 50 percent; C) a little under half, say 40 percent; or D) at this time, just a quarter, 25 percent, the way markets have gone down of course?
Hobson: OK, well I am going to go with just about half. I think in the financial markets, we're still, I would say 50 percent.
Richter: You're close but not quite right. Fifty percent is a little too high, actually, and if the flight to safety continues, of course, out of emerging markets and ironically into the U.S. dollar -- not that we feel so safe here these days -- then it would be 50 percent. But that's not where we're at anymore. That's a little in history.
Hobson: Then I've got to go with C) a little under half, 40 percent.
Richter: That is absolutely correct. We are at 40 percent. But here's my bonus question, for you: That 40 percent -- is that higher or the same level as what the U.S. in a totally different but important field, global defense spending accounts, for? Is our stock market share globally in line with our defense share?
Hobson: No way, Stefan -- we've got to be probably about 70 percent with our defense!
Richter: Not quite. Stock market capitalization, the U.S. share of global defense spending -- both are around 40 percent, which makes it pretty astounding in terms of a world of parallels.
Hobson: Stefan Richter is the editor-in-chief of The Globalist. We'll see you next time, Stefan.
Richter: All right, bye bye.