Stock market statistics may well be the most important piece of information on the global market. How else would investors know when to connect and trade investments and stock futures? In fact, almost anyone can invest in a stock and make a profit off of it, but they have to be smart about it. It’s like a game of chess — it requires a lot of strategizing, knowledge, and patience. With the help of this article, you’ll learn everything there is to know about the stock market today and what to expect in the future.
Don’t believe us? Just take a look down below:
Top 10 Stock Market Facts and Figures to Keep in Mind
- 2018 marks a 14.9% decrease in total market capitalization compared to 2017.
- The finance sector in the US is leading in market capitalization with a 19% market share.
- It usually takes a month of recovery time for a 5% to 10% stock market decline.
- Around 40% of the global market capitalization is represented by the US.
- Middle-class families have suffered a 50% plus loss on household equity holdings since 1989, current stock market stats reveal.
- Mortgage rates are at their highest levels, despite the government freezing interest rates.
- The New York Stock Exchange was the leading stock exchange operator for domestic capitalization in Northern America.
- Mortgage rates are at their highest levels, despite the government freezing interest rates.
- CrowdStrike stocks surged by 24% the past week thanks to the new quarantine measures.
- The US dollar is up by 7%, making it the safest currency among other major ones like the British pound and Swiss franc.
General Stock Market Statistics
1. 2018 marked a 14.9% decrease in market capitalization compared to 2017.
(World Federation of Exchanges)
According to the World Federation of Exchanges, after four years of uninterrupted growth, the global market cap finally fell in 2018. The high unpredictability of the currency and equity markets had a major impact on different regions of the world, widening the gap between the various markets.
The Middle East, Africa, and Europe were down 16.5%, whereas the Asia-Pacific region suffered a 23.8% decrease. Still, statistics in the stock market show the decrease was only 6.3% in the Americas.
2. It usually takes a month of recovery time for a 5% to 10% stock market decline.
(Guggenheim Investments)
What’s more, although deeper declines are quite rare, those over 40% need 58 months of recovery time. This is enough to compromise the entire financial plan of any investor.
In fact, pullbacks of over 20% are generally connected to economic recessions.
3. Timeless stock market statistics: September is the worst month for investing.
(Investopedia)
Among the many fascinating phenomena in the US stock market, the September Effect might just be the most interesting one.
This phenomenon is intriguing because the decline isn’t linked with any specific news or market event. Namely, one theory suggests that the changing seasonal behavior is to blame — most investors were on vacation during the summer (hence, they made fewer trades and are now trying to “cash-in” to regain lost profits).
It’s also worth noting that, in recent years, the September Effect has greatly dissipated.
4. Since 1989, middle-class families have suffered a 50% plus loss on household equity holdings, facts about the stock market indicate.
(A Wealth of Common Sense)
As time goes on, the gap between the different classes becomes wider and more prominent. 1989 marks the year when middle-income households owned 15% of household equity assets.
In 2016, this number went down to just 5%. Things get even more interesting when you take a deeper dive into personal finances and the fact that equity assets of upper-class citizens rose by 5% during the same time period.
5. More than 80% of the stock market is now fully automated.
(CNBC)
Automation is slowly, but surely, taking over every aspect of our lives, and the stock market is no exception. In fact, one of the most interesting stock market statistics is that the vast majority of US trades are now “machine-led.”
State-of-the-art computers are now able to make swift online trading decisions that prioritize sell-offs and short-term movements in place of traditional, long-term outlooks.
6. In Q1 of 2019, share purchases experienced a 22% boom.
(Bloomberg)
In other words, the total value of the stock market increased by over $5 trillion.
Some experts take this as signs that the current cycle is nearing its end. Yet, one thing is for sure — the gap between private investors and corporations is growing ever wider.
The Latest Stock Market News
7. The stock market may bottom much sooner than expected, regardless of the recent epidemic.
(Market Watch)
The relative size of the US stock market is generally a good indicator of where the economy is going. However, the nature of the current pandemic is making it difficult to predict when the stock market may recover.
Nevertheless, the market has already started its inevitably bottoming process, confirmed by the recent influx of negative headlines. Right now, during the Covid19 crisis, equity prices are near their most attractive levels.
8. Mortgage rates are at their highest levels, despite the government freezing interest rates.
(Market Watch)
Interest loans have skyrocketed the past week despite the recent fluctuations in the stock and bond markets, as seen in the latest stock trading statistics.
The 30-year fixed-rate mortgage had a 3.65% average in the week ending with March 19, which marks a 29-basis point increase from the week before.
9. The price of silver is at its lowest in 11 years.
(Market Watch)
The eleven-year low price of silver has boosted the demand for this precious metal now more than ever. To no one’s great surprise, the sudden demand for the said metal is the result of the ongoing coronavirus outbreak.
10. More stock market facts: CrowdStrike stocks surged by 24% the past week thanks to the new quarantine measures.
(Market Watch)
Not everyone is taking a hit due to the recent pandemic. On the contrary, this cybersecurity company is enjoying every minute of it (so to speak).
After all, the new work-from-home measures can spell only good things for companies whose services are based on home needs. Work from home stats are very encouraging for employees as well.
11. US stocks have lost 4% in volatile trading.
(Wall Street Journal)
The latest quarantine measures have “spooked” most investors, as indicated by recent investment statistics. Even the interventions of central banks are not enough to ease the strains on the market.
12. The US dollar is up by 7%, making it the safest currency among other major ones like the British pound and Swiss franc.
(CNN Business)
Although this is essentially good news, both CNN Money and Business have reported it could still bring about a liquidity crunch.
In other words, as other countries rely on the American dollar as the most stable currency right now, a dollar shortage might be just around the corner.
Stock Market Stats in the US
13. International equity is held by around 10% of US households.
(A Wealth of Common Sense)
What this statistic shows is that American households have been steadily diversifying in the past ten years. Economic recovery, and less restrictive and costly ways of investing, have fueled the world equity market, boosting it by some 15%.
14. Life insurance companies held $542 billion in equities, according to the stock market statistics from 2018.
(Statista)
This is a significant decrease from 2017, when life insurance companies held $623 billion in equities. Nevertheless, the sector has been climbing steadily since 2000, when the number of equities was just $338 billion.
From this, we can deduce that Americans are paying a lot more attention to their life insurance and retirement plans.
15. The New York Stock Exchange was the leading stock exchange operator for domestic capitalization in Northern America.
(Statista)
On top of that, one of the most important stock market facts from 2019 states that the NYSE was the largest stock exchange by market capitalization of listed properties on the planet.
16. Around 40% of the global market capitalization is represented by the US.
(Seeking Alpha)
Due to the strengthening dollar, the US market was able to reach these levels for the first time since 2005. The gains in American equities contributed, as well.
On top of that, the decline of international equities also helped boost the US share of the global market.
17. 55% of US adults invested in the US stock market in 2018.
(Statista)
More than half of Americans invested in the stock market in 2018, marking an increase from the previous two years.
Still, according to stock market statistics from 2008, the number of people who were investing peaked right before the crash of 2008 with 65%.
18. The finance sector in the US is leading in market capitalization with a 19% market share.
(Visual Capitalist)
The rise of corporations and tech innovations has moved the vast share of capitalization towards digital solutions. Consequently, the communication sector rose to second place, currently holding 14% of market capitalization.
In third place, we have information tech with 12%.
In addition, healthcare stock futures are also on the rise, holding a stock market percentage of 9%.
FAQs
How are statistics used in the stock market?
(Alpha Gamma)
There is more than one way statistics can help you in the stock market today.
First of all, they can be used to determine the real value of a company, compared to other companies listed on the exchange. This is called the price-to-book ratio.
Secondly, statistics are also used to check the price-to-sales ratio — this shows the real value of every dollar placed on a company’s value of revenue. One of its biggest uses is in projecting sales for the upcoming year and comparing stocks in the same industry.
Finally, the most important role of statistics is to determine the price-to-earnings growth ratio, which helps you figure out the intrinsic value of a stock.
How many stocks are on the stock market?
(The Balance)
The NYSE currently lists 2,800 companies on the US stock market. Combined, these companies would have a joint value of $21 trillion in market capitalization. In turn, this represents the value of all the shares.
In addition to that, both of the two largest exchanges on the stock market are in the US.
What percent of the time does the stock market go up?
(Nerd Wallet)
The average returns on the stock market are 10%. However, this doesn’t mean that the returns are exactly 10% each year. The stock market performance tends to go up and down throughout the year, having both positive and negative returns.
At the end of most fiscal years, though, the market is generally positive. Meaning, it keeps climbing the following year as well. In the past ten years, the stock market hasn’t always been on the incline, stock market statistics by year indicate, yet it has been on the rise for around 70% of the time.
Conclusion
The US stock market always had its ups and downs, accurately representing the state of the world. Things might be looking unstable at the moment with the growing pandemic, but that doesn’t mean they’ll always be that way. It’s up to you to decide when you’ll make your first investment and join the share market.
Whenever that may be, keep these stock market statistics in mind to increase your chances of making a profit and remember to make every decision with plenty of resolve and research to back you up. We’ll be here to help you out.
