Did I tell you about the time I spoke at Yale school of management? the question was posed by a CT legislature official and the answer to that question was actually China and India.
Equity market returns are a function of cash generation and asset supply/demand. Multiple changes dominate cash generation over short time frames, and the US equity market is much more expensive than most foreign ones because more money wants exposure to it. Perhaps that will change, but what’s the alternative? Small and sclerotic EU or Japanese markets? China, where US sanctions or arbitrary, opaque CCP decisions can obliterate your entire capital overnight? Mountains of cash are being printed every month, and it will most likely end up the same places it has for the past decade.
This is true but there’s a big difference between being a local vs global favorite. The US is firmly a global favorite, and immigration policy ebbs and flows with the political climate. Even with that the US has a much better immigration policy than the vast majority of the world.
1. The S&P didn't exist in the 1800s. It started in 1928. 2. If you are asking why it is always seems to go up, because the ingredients are always replaced by newer, better performing companies. Also, the tide (inflation) raises every boat in the port.
this isn't true. The SPX index was founded in the 1950s. The dow industrial was created before the great depression. During the GFC, data providers backdated the SPX through 1928 so that people could analyze how the markets changed through that period.
Actually: "In 1923, Standard Statistics Company (founded in 1906 as the Standard Statistics Bureau) began rating mortgage bonds and developed its first stock market index consisting of the stocks of 233 U.S. companies, computed weekly. In 1926, it developed a 90-stock index, computed daily" But anyway, even if you were right, my point still stands, there was no S&P before the late 1920s.
WHY didn't the US cultivate its own "brains"? WHY didn't the US invest heavily in STEM? WHY didn't the US invest heavily in education instead of sports and entertainment? That is the problem.
Standard (started in 1906) and Poors (started in 1860) didn't exist as a single merged company until 1941. S&P 500 started in 1957.
Interestingly and regardless my point still stands. So why are we looking at a chart that goes back 70+ years longer?