[OPE-L] stocks versus bonds in the global market

From: Jurriaan Bendien (adsl675281@TISCALI.NL)
Date: Wed Oct 17 2007 - 13:46:21 EDT 

I tried to find out the evolution of the ratio of global investment in stocks (equities) to investment in bonds. From the figures I obtained so far, it seems that investment in bonds increased more than stocks in recent years, but the historic trend is not all that significant. Bonds are however not the same as total securities, whether financial claims or physical assets. The total capital invested in securities increases faster than the total capital invested in stocks. The main quantitative reason seems to be, that the rich tend to invest more in securities, than in stocks, and ordinary workers invest more in housing. 


Global market capitalisations in US$ trillions, 1993-2005


      Year (1) Market capitalisation of the global equity market (2) Global market capitalisation of the domestic
      bond markets (3) Global market capitalisation of the international
      bond markets 
      1993 13,7 16,7 1,9 
      1994 14,5 18,9 2,3 
      1995 17,1 20,6 2,6 
      1996 19,5 21,2 2,9 
      1997 21,7 20,9 3,3 
      1998 25,4 23,3 4,1 
      1999 35,0 24,4 5,0 
      2000 31,1 24,3 5,9 
      2001 26,6 24,7 7,1 
      2002 22,8 27,9 8,8 
      2003 31,3 31,3 11,1 
      2004 37,1 41,6 14,0 
      2005 40,9 44,0 14,6 
        
      Sources: World Federation of Exchanges, Bank for International Settlements
            Cited at http://www.ifsl.org.uk/

This archive was generated by hypermail 2.1.5 : Wed Oct 31 2007 - 00:00:19 EDT