Global Stock Market Wealth in 2007 Sets Records
According to data just released by the World Federation of Exchanges, global stock market capitalization reached a new record of $60 trillion in 2007 (see top chart above). The increase in stock market value of $10 trillion during the year also established a new all-time record for the largest annual increase of global stock market wealth in history, beating the previous record of a $9.66 trillion increase in 2006 (see bottom chart above).
Consider also that $38.2 trillion of world stock market value was created between 2002-2007 ($22.5 to $60.7 trillion). In the chart above, notice that world stock market value in 1999 set a new record of $35 trillion before declining for three consecutive years (2000, 2001, 2002) during the Dot.com bust.
Think about it: It took the entire history of the world until 1999 to create the first $35 trillion of stock market wealth; and then more than that amount of wealth was created ($38.2 trillion) in just the most recent five-year period from 2002-2007! Not a bad record for wealth creation, largely because of globalization and the most significant spread of free market capitalism in history.