The world’s stock market exchanges have a combined market cap of $89.5 trillion. But, while their amalgamated sum is massive, there are vast discrepancies between the value of each.
Which exchanges are the world’s largest stock markets, and why?
|#3||Japan Exchange Group||$5.37T|
|#4||Shanghai Stock Exchange||$4.92T|
|#5||Hong Kong Exchanges||$4.48T|
|#7||Shenzhen Stock Exchange||$3.49T|
|#8||London Stock Exchange||$3.13T|
|#9||Saudi Stock Exchange||$2.15T|
Market capitalizations as of April 2020
U.S. companies dominate the global equities landscape.
This is the case for several reasons. For starters, American companies like Apple, Microsoft, and Amazon possess trillion-dollar valuations.
Another factor is prestige—U.S. stock exchanges have always carried an elevated sense of legitimacy, which ultimately provides access to the best capital and financing for companies that trade there. That’s why you’ll find non-American companies like Toyota, Sony, and Alibaba on U.S. exchanges.
On the NYSE, there are 507 non-U.S. stocks from 46 countries. Here’s a look at 10 notable ones from all over the world that bring in a combined $2.1 trillion in market cap:
|Toyota Motor Corp||TM||Japan||$213.8B|
|Anheuser-Busch InBev NV||BUD||Germany||$94.0B|
|HSBC Holdings||HSBC||United Kingdom||$80.4B|
Trading on big American exchanges also does the job of putting some investor concerns at bay. That’s because non-U.S. companies must comply with SEC and accounting regulations, thus providing a more overall transparent process to investors.
» Interested in the world’s money and markets? Read our full article: All of the World’s Money and Markets in One Visualization.
Charted: Money Can Buy Happiness After All
We’ve heard that money can only buy happiness up to a certain point. But a new study suggests cut-off may be a lot higher than we thought.
In One Chart: Money Can Buy Happiness After All
What’s the relationship between money and happiness? Previous studies have indicated that, while money can in fact buy happiness, it plateaus at approximately $75,000/year.
However, new research suggests otherwise.
Using over a million real-time reports from a large U.S. sample group, a recent study found that happiness increases linearly with reported income (logarithmic), and continues to rise beyond the $80,000/year mark.
Below, we’ll provide more details on the research methodology, while touching on a few possible reasons why higher incomes may improve people’s happiness levels.
How is Happiness Measured?
Past research on happiness relative to income has relied on retrospective data, which leaves room for human memory errors. In contrast, this new study uses real-time, logged data from a mood tracking app, allowing for a more accurate representation of respondents’ experienced well-being.
Data was also collected by random prompts over a period of time, with dozens of entries logged for each single respondent. This provides a more well-rounded representation of a person’s overall well-being.
Two forms of well-being were measured in this study:
- Experienced well-being
A person’s mood and feeling throughout daily life.
- Evaluative well-being:
Someone’s perception of their life upon reflection.
Both forms of well-being increased with higher incomes, but evaluative well-being showed a more drastic split between the lower and higher income groups.
The Results (Measured in Standard Deviations from Mean)
|Annual Income||Well-Being (Experienced)||Well-Being (Evaluative)|
Why Does Money Buy Happiness?
The report warns that any theories behind why happiness increases with income are purely speculative. However, it does list a few possibilities:
- Increased comfort
As someone earns more, they may have the ability to purchase things that reduce suffering. This is particularly true when comparing low to moderate income groups—larger incomes below $80,000/year still showed a strong association with reduced negative feelings.
- More control
Control seems to be tied to respondents’ happiness levels. In fact, having a sense of control accounted for 74% of the association between income and well-being.
- Money matters
Not all respondents cared about money. But for those who did, it had a significant impact on their perceived well-being. In general, lower income earners were happier if they didn’t value money, while higher income earners were happier if they thought money mattered.
Whatever the cause may be, one thing is clear—Biggie Smalls was wrong. Looks like more money doesn’t necessarily mean more problems.
»Like this? Then you might enjoy this article, Which Countries are the Most (and Least) Happy?
Visualizing Net Worth by Age in America
How much is the average American worth at different ages? This chart reveals the average net worth by age in the U.S.
Visualizing Net Worth by Age in America
Calculating the net worth of individuals often seems like the kind of math reserved only for the richest people in the world like Elon Musk or Jack Ma. But as the proverbial pie gets bigger, the net worth of the average American household gets bigger as well.
This chart uses data from the U.S. Federal Reserve Bulletin to reveal median and average household net worth across different age categories in 2019.
Average vs. Median Net Worth
A person’s net worth is a sum of their assets and liabilities. Here’s a closer look at net worth by age in the U.S.
|Age||Median Net Worth 2019||Average Net Worth 2019||Difference|
|Younger than 35||$13,900||$76,300||>5x|
|Older than 75||$254,800||$977,600||>3.5x|
The age group with the highest net worth is those aged 65-74, sitting at around $1.22 million. Coming in at a close second, are 55-64 year olds, at $1.18 million. However, these are the numbers using the average, while median net worth is quite different.
Median net worth at 65-74, for example, is $266,000, a difference of over $950,000 compared to the average. This reveals that there are likely high net worth individuals skewing the average towards over a million dollars in the same age category.
Both average and median net worth appear to increase throughout one’s life, trailing off slightly around the 75+ age range.
Trends in Net Worth
With the economic impacts of COVID-19, it’s possible that median net worth growth could taper off across nearly every age category, as people lose jobs, income, and assets such as houses.
Average net worth, on the other hand, may not drop as significantly, as a handful of American billionaires have actually increased their net worth during the pandemic.
Overall, wealth has been generally increasing in America with a consistent rise in average and median net worth occurring over the three years leading up to the pandemic. And while this steady increase has likely been slightly derailed, the general trends in asset ownership and income increases over time, bode well for Americans.
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