The stock market remains one of the most accessible and transparent investment options available to the ordinary person. If invested wisely, a stock market portfolio can be a powerful vehicle to quickly increase your earnings and your net worth. Be it for just a casual read or for gaining valuable market insights, here are 12 revealing stock market statistics for the current year.
Top 6 Stock Market Statistics You Should Know Before Investing
- Over 93% of global stock value is divided between just four regions.
- The US alone represents 54.5% of the world’s stock market.
- Over 80% of stock trading is automated.
- US stock markets have performed, on average, better during war periods than during peace.
- The best performing stock of the 11-year bull market gained an astonishing +20,544.8%.
- Just 10% of Americans own over 84% of the stocks.
General Stock Market Stats
1. Over 93% of global stock value is divided between just four regions.
North America, East Asia, India, and Western Europe together command nearly all of the world’s stock market share. Out of these, stock statistics show that just 16 of them represent 87% of the global market share.
2. The US alone represents 54.5% of the world’s stock market.
Over the last few years, the US stock market has gradually commanded a larger and larger share of the world’s stock market, representing over half of its total value. The US stock market size is more than 7 times the size of its nearest competitor (Japan) and more than 13 times the size of China’s.
3. The greatest stock market growth was during the term of Franklin D. Roosevelt.
At a record of 236.5%, the first term of Roosevelt’s presidency coincided with the best stock performance in US history. However, if measured by the total years of presidency, President Coolidge’s terms recorded the best performance, at an estimated 239.7% growth by the end of his presidency.
The worst stock performance was under Herbert Hoover, when the stock market lost 82.1% of its value. Moreover, comparing the first 42 months of the previous President and the current, stock market growth under Obama was better, at 62.6%, compared to almost half of that value (34.6%) under Trump.
Stock Trading Stats
4. On average, the stock market performs the poorest in September.
Since the 1950s, both the Dow Jones Industrial Average (DJIA) and S&P 500 have seen a decline in prices in September. Some have dubbed the annual drop-off as the ‘September Effect.’ This unusual phenomenon isn’t limited to the US market, as it also affects international stock markets, from NIKKEI to LSE. Some analysts think the negative stock market trends may be a result of seasonal behavioral bias, since that is when the investors usually cash in their summer holdings.
5. Over 80% of stock trading is automated.
Over the years, a greater and greater portion of the stock market is being managed by complex A.I. algorithms that execute the buying and selling of stocks. Data on stock market trends in 2019 from the financial giant, J.P. Morgan, estimate that roughly 80% of all stocks are being exchanged on autopilot.
General Stock Market Facts and Stats
6. US stock markets have performed, on average, better during war periods than during peace.
One would think that wars would actually be bad for American business because of their costs and uncertainty, but stock market statistics seem to indicate otherwise. In the period between 1926 and 2013, the US stock market had provided higher returns at lower risks during times of war than during peaceful periods. Only during the Vietnam War were the returns lower than the period’s average. In the recent Iraq War, stock market growth began a rise lasting for four years. Since the start of the war on terrorism, the US stocks have gained 83%.
7. AMD’s stock prices went up over 150% last year.
2019 was the last year of the 11-year long bull market, and among the S&P index’s top performers that year was Advanced Micro Devices (NASDAQ: AMD). Its stock grew from a low price of $19 at the start of the year to $49 by the end of it. A stock statistics analysis over a 5-year period shows its performance to be even more stellar, growing from $2.58 in the mid of June 2015 to $52.63 at the time of writing.
8. The best performing stock of the 11-year bull market gained an astonishing +20,544.8%.
The period between 2009 and 2019 experienced one of the longest uninterrupted market growths in history. One of the fastest-growing stock ever in this period was Jazz Pharmaceuticals (NASDAQ: JAZZ), growing by an astonishing +20,544.8%. If you had invested $20,000 in its stock back in Jan 2009, you would have had roughly $1.875 million by now, based on its current price.
9. If you invested $1 million in this company back in June 2008, you would now have about $1,126.
If there is one sector that you always have to be careful about investing in, stock statistics show that it’s the traditional energy sector. Since the start of the 2008 financial crisis, it has never been able to fully recover and return to its pre-crisis level of stock prices. Among the hardest hit from the crisis was Chesapeake Energy (NYSE: CHK), which, in a span of just a few days, lost nearly $9,500 worth of stock value.
The company never fully recovered from the loss, and with the start of the COVID-19 lockdown and the sharp plunge of oil prices, its stock again took a steep nose-dive, amounting to just $14.2 at the time of writing. According to current stock market trends, the value of its shares is likely to decline even further.
10. Microsoft leads the corporate world in terms of market capitalization.
With a value of over 1.2 trillion in 2020, Microsoft (NASDAQ: MSFT) can be said to be the most valuable company in the world today. First going public back on March 13, 1986, with an initial share value of just $0.10, its stocks have consistently risen annually in value far above that of the stock market growth average. Today, the IT behemoth trades its share at $182.92 at the moment of writing. If you were to invest $10,000 at its first IPO, you would now have earned $18,292,000 on it, making you a multi-millionaire.
Stock Ownership Statistics
11. Just 10% of Americans own over 84% of the stocks.
An increasingly shrinking percentage of Americans are now owning an increasingly larger share of the US stock market, a clear indicator of a growing issue of rising inequality. Furthermore, 94% of the richest 20% of Americans held significant stock holdings valued at $10,000 or more, while only 24% of middle-class Americans (representing 60% of the total population) featured a similar holding.
12. Only 10% of US households hold non-US stocks.
(A Wealth of Common Sense )
The majority of American investors don’t feature a portfolio diversified with international equities. However, as access to international markets becomes easier and cheaper, the long-term trend is going towards increased diversification.
How do I check my shares?
Checking on your stock holding and doing stock statistics analysis is very easy. Your stockbroker can provide real-time graphs and figures of how your shares are currently performing. If your stockbroker does not provide this service, you can use free online resources such as Yahoo Finance and Google Finance and set up a customized tracker of your current holdings.
In addition, if you have invested in individual company stocks, you can check in on their quarterly report for investors, showing how their stock performed for that period.
How do you read stock stats?
Reading stock stats is very simple. The best way is through reading a stock chart, which shows how the stock performed on a daily basis. On the X-axis are listed the dates and on the Y-axis are listed the prices on that day.
The day’s high and low in stock price may also be represented by a bar of either red or green. A red bar means that the stock closed lower on that day compared to the previous day’s close, and a green bar means it closed higher than it did the day before.
How much is the entire stock market worth?
Based on the latest report released by McKinsey Global Institute, the current world stock market is worth a mind-boggling $118 trillion. Comparing the current value with that of the previous year, that’s a massive increase of over $28 trillion!
Will the stock market crash again in 2020?
Few predicted stock market trends for march 2020 to be as catastrophic as what actually happened. The coronavirus pandemic and the impending lockdown led to panic selling on the stock market, leading to a crash. On March 23, the S&P 500 index had fallen 34% from February’s peak.
While the market has recovered somewhat afterward, many are worried that a possible crash could happen again this year. According to the famed economist, David Rosenberg, if history is any indicator, the market is likely to crash again this year or in the foreseeable future.
With rising unemployment, worsening COVID-19 crisis, and many businesses permanently shutting down, it is easy to believe Rosenberg’s words even if there are bullish trends in the stock market at present.
What percent of Americans own stocks?
According to the latest survey by Gallup, over half (55%) of all American adults own stocks. The percentage has remained steady since 2010, when 56% said that they owned stocks. However, among young adults, the percentage of stock ownership is far lower — at just 32%.
Men were slightly more likely to own stocks than women. The bigger difference was in terms of education and income. 85% of those with a postgraduate degree owned stocks compared to just 33% of those with no college degree. Individuals with $100,000 in annual income were nearly 4 times more likely to own stocks than individuals with an annual income of less than $40,000.
We hope you’ve enjoyed reading these stock market statistics and found them helpful. One key takeaway from this list is that regardless of how the stock market may perform over the short term, over a longer period, it is most likely to provide you with good returns. So, if you haven’t invested in stocks before and are unsure about investing right now, do take a calculated leap. The sooner you invest, the higher your future returns will be.