Markets
Mapping the Top Export of Every Country
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Mapping the Top Export of Every Country
View the high resolution version of today’s graphic by clicking here.
In a global market with (mostly) free trade, it’s common to see economies that are very specialized, each producing specific goods based on the competitive advantages, incentives, and resources they have available.
Whether those inputs are inexpensive labor, ample amounts of natural resources, or a surplus in engineering talent, countries can use these advantages to manufacture and sell goods on the international market at a higher level of quality or a better price than competitors.
Simplifying World Trade
Today’s infographic comes to us from VoucherCloud, and it helps us get a sense of this specialization by looking at the top export of every country in the world. It’s a simple but telling way to see what countries are “good” at producing.
To start, here is a breakdown of countries, based on top export category:
Top Export (Category) | # of countries | % of countries |
---|---|---|
Fuel | 53 | 28.3% |
Metal, Mineral and Organic | 50 | 26.7% |
Food and Produce | 35 | 18.7% |
Transportation | 24 | 12.8% |
Electronics | 14 | 7.5% |
Textiles | 6 | 3.2% |
Medical | 5 | 2.7% |
Weapons | 0 | 0.0% |
Note: Dataset is from the Observatory of Economic Complexity (2015)
At a high level, it’s clear that the vast majority of exports are derived from natural resources.
Fuels, metals, minerals, and organics make up over half of all top exports. Meanwhile, food and produce, which includes commodities like sugar, coffee, fish, and soybeans, also could be classified this way as well – and they make up a further 18.7% of top exports.
A Dive Into Regions
Viewing specific regions based on this concept can also provide some insight, as well.
It gives a sense of how developed the economies are in a certain area – and it also shows what resources are plentiful and in demand from those regions.
Middle East
In case you weren’t aware, oil is a pretty big deal in the Middle East. There are a few exceptions: Israel’s top export is diamonds, Jordan’s is fertilizers, and Lebanon specializes in jewelry. The most recent data for war-torn Syria shows spice seeds at the top export.
Europe
Meanwhile, Europe is home to many developed economies that are focused on value-added goods, with many being in the transportation sector. Cars are a top export for nine countries here, and vehicle parts are a top export for other places, like Poland or Romania, as well.
Interestingly, France stands out here with its top exports being aerospace-related.
Asia
Looking at Asia also provides some interesting contrasts.
South Korea specializes in integrated circuits, while their northern neighbors sell coal briquettes (mostly to China) as a top export. It may also be surprising to see economies like Thailand and Vietnam having top exports such as computers and broadcasting equipment.
At the same time, who knew that Nepal had such a bustling flavored water industry?
Markets
Beyond Big Names: The Case for Small- and Mid-Cap Stocks
Small- and mid-cap stocks have historically outperformed large caps. What are the opportunities and risks to consider?
Beyond Big Names: The Case for Small- and Mid-Cap Stocks
Over the last 35 years, small- and mid-cap stocks have outperformed large caps, making them an attractive choice for investors.
According to data from Yahoo Finance, from February 1989 to February 2024, large-cap stocks returned +1,664% versus +2,062% for small caps and +3,176% for mid caps. Â
This graphic, sponsored by New York Life Investments, explores their return potential along with the risks to consider.
Higher Historical Returns
If you made a $100 investment in baskets of small-, mid-, and large-cap stocks in February 1989, what would each grouping be worth today?
Small Caps | Mid Caps | Large Caps | |
---|---|---|---|
Starting value (February 1989) | $100 | $100 | $100 |
Ending value (February 2024) | $2,162 | $3,276 | $1,764 |
Source: Yahoo Finance (2024). Small caps, mid caps, and large caps are represented by the S&P 600, S&P 400, and S&P 500 respectively.
Mid caps delivered the strongest performance since 1989, generating 86% more than large caps.
This superior historical track record is likely the result of the unique position mid-cap companies find themselves in. Mid-cap firms have generally successfully navigated early stage growth and are typically well-funded relative to small caps. And yet they are more dynamic and nimble than large-cap companies, allowing them to respond quicker to the market cycle.
Small caps also outperformed over this timeframe. They earned 23% more than large caps.Â
Higher Volatility
However, higher historical returns of small- and mid-cap stocks came with increased risk. They both endured greater volatility than large caps.Â
Small Caps | Mid Caps | Large Caps | |
---|---|---|---|
Total Volatility | 18.9% | 17.4% | 14.8% |
Source: Yahoo Finance (2024). Small caps, mid caps, and large caps are represented by the S&P 600, S&P 400, and S&P 500 respectively.
Small-cap companies are typically earlier in their life cycle and tend to have thinner financial cushions to withstand periods of loss relative to large caps. As a result, they are usually the most volatile group followed by mid caps. Large-cap companies, as more mature and established players, exhibit the most stability in their stock prices.
Investing in small caps and mid caps requires a higher risk tolerance to withstand their price swings. For investors with longer time horizons who are capable of enduring higher risk, current market pricing strengthens the case for stocks of smaller companies.
Attractive Valuations
Large-cap stocks have historically high valuations, with their forward price-to-earnings ratio (P/E ratio) trading above their 10-year average, according to analysis conducted by FactSet.
Conversely, the forward P/E ratios of small- and mid-cap stocks seem to be presenting a compelling entry point.Â
Small Caps/Large Caps | Mid Caps/Large Caps | |
---|---|---|
Relative Forward P/E Ratios | 0.71 | 0.75 |
Discount | 29% | 25% |
Source: Yardeni Research (2024). Small caps, mid caps, and large caps are represented by the S&P 600, S&P 400, and S&P 500 respectively.
Looking at both groups’ relative forward P/E ratios (small-cap P/E ratio divided by large-cap P/E ratio, and mid-cap P/E ratio divided by large-cap P/E ratio), small and mid caps are trading at their steepest discounts versus large caps since the early 2000s.
Discovering Small- and Mid-Cap Stocks
Growth-oriented investors looking to add equity exposure could consider incorporating small and mid caps into their portfolios.
With superior historical returns and relatively attractive valuations, small- and mid-cap stocks present a compelling opportunity for investors capable of tolerating greater volatility.
Explore more insights from New York Life Investments
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