E Ten-Year History Of Global Investment By Market Category

As one who is a big proponent for looking at trends, I thought I would show my followers how the market value of different business sectors has changed over the last ten years. The view you get by looking at trends is much, much better than any singular, one-point perspective has to offer. And the longer the trend view the better. A ten-year trend view offers a better perspective than a five-year trend view which offers a better perspective than a one-year trend view—especially from a policy and a decision standpoint perspective. 

In fact, one of my best articles for TalkMarkets, One Simple Graph That Every Investor Needs to Understand, looked at “inflation” over a period of approximately one-hundred years. That article offered a better perspective of that key economic variable, tying sub-divided period trends to historical facts, that I believe enlightened even the slow thinkers at the Federal Reserve. That article at least helps explain what I believe is now the current Federal Reserve policy regarding inflation and interest rate policy.

Enough said about the usefulness of looking at trends. Let’s go to the videotape and look at how the global portfolio of market investment has changed during the last decade. The following graph shows the “relative percent” of the global portfolio that ten different business sectors garnered each year over the past decade. The data comes from the yearly list of Forbes Global 2000 companies. The ten business sectors account for the total global market value, which was $36.9 Trillion in 2011 and $54.3 Trillion in 2020. 

Okay, Jim—so what are you trying to tell me with this trend perspective?

Let me start out with the obvious or what I consider the most important takeaways from the above graph, then work myself down.

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Disclosure: No positions.

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Barry Hochhauser 2 weeks ago Member's comment

It sounds like your next article will be quite interesting as well.