Why a shrinking US stock market matters to investors
The shrinkage is undeniable
Here are some eye-opening statistics;
- Although the value of US listed firms has been rising steadily for years, the Wiltshire 5,000 – one of the broadest representations of the US market – contains only around 3,600 firms
- The number of US companies as a whole has fallen nearly 40% since 1997
- There have not been fewer listed US stocks since 1984
What this reveals is that an ever-decreasing number of large firms dominate the US listed market and that this is a well-established trend. So what’s going on?