us domination

Today the US dominates equity markets in terms of market cap and you have to take a view either way if you want to generate excess returns. However, it's not always been the case.

📖 The chart below is from the UBS Global Investment Returns Yearbook and shows the make-up or the world stock markets back in 1899.

Authors Elroy, Dimson, Marsh and Stanton point out that "Austria-Hungary was 5% of world markets and while investors didn't experience total losses (in real terms), it was the worst performing stock market and second worst bond market of the 21 countries with continuous history."