By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. John Maynard Keynes, The Economic Consequences of the Peace This year's edition of the Credit Suisse Global Investment Returns Yearbook is out, and as every other year, it remains full of curious and interesting trivia about the market's composition and return performance over the past year.

While there are numerous fascinating observations - we encourage readers to peruse the full presentation at their leisure - below we present three charts highlighting the dramatic transformation of the US stock market starting in and continuing through today, showcasing its relative domination of all global equity markets, the relative sizes of world markets, and how significantly the equity composition has changed over the past years.

At the beginning of — the start date of our global returns database — virtually no one had driven a car, made a phone call, used an electric light, heard recorded music, or seen a movie; no one had flown in an aircraft, listened to the radio, watched TV, used a computer, sent an email, or used a smartphone.

There were no x-rays, body scans, DNA tests, or transplants, and no one had taken an antibiotic; as a result, many would die young. This has given rise to entire new industries: Meanwhile, makers of horse-drawn carriages and wagons, canal boats, steam locomotives, candles, and matches have seen their industries decline.

There have been profound changes in what is produced, how it is made, and the way in which people live and work. These changes can be seen in the shifting composition of the firms listed on world stock markets. Chart 2 shows the industrial composition of listed companies in the USA and the UK. The upper two pie charts show the position at the beginning of , while the lower two show the beginning of Besides railroads, other industries that have declined precipitously are textiles, iron, coal, and steel.

These industries still exist, but have moved to lower-cost locations in the emerging world. Yet similarities between and are also apparent. The banking and insurance industries continue to be important. Similarly, such industries as food, beverages including alcohol , tobacco, and utilities were present in just as they are today.

And, in the UK, quoted mining companies were important in just as they are in London today. But even industries that initially seem similar have often altered radically. For example, compare telegraphy in with smartphones in Both were high-tech at the time. Or contrast other transport in — shipping lines, trams, and docks — with their modern counterparts, airlines, buses, and trucking. The largest industries in are technology in the USA, but not the UK , oil and gas, banking, healthcare, the catch-all group of other industrials, mining for the UK, but not the USA , telecommunications, insurance, and retail.

Of these, oil and gas, technology, and healthcare including pharmaceuticals and biotechnology were almost totally absent in Telecoms and media, at least as we know them now, are also new industries. Our analysis relates only to exchange-listed businesses. Some industries existed throughout the period, but were not always listed. For example, there were many retailers in , but apart from the major department stores, these were often small, local outlets rather than national and global retail chains like Walmart or Tesco.

Similarly, in , a higher proportion of manufacturing firms were family owned and unlisted. In the UK and other countries, nationalization has also caused entire industries — railroads, utilities, telecoms, steel, airlines, and airports — to be delisted, often to be re-privatized at a later date.

We included listed railroads, for example, while omitting highways that remain largely state-owned. The evolving composition of the corporate sector highlights the importance of avoiding survivorship bias within a stock market index, as well as across indexes.

In the Yearbook, we looked at long-run industry returns in the USA and UK since , and asked whether investors should focus on new industries and shun the old, declining sectors.

We showed that both new and old industries can reward as well as disappoint. It all depends on whether stock prices correctly embed expectations. For example, we noted above that, in stock market terms, railroads were the ultimate declining industry in the USA in the period since Yet, over the last years, railroad stocks have beaten the US market, and outperformed both trucking stocks and airlines since these industries emerged in the s and s.

Indeed, the research in the Yearbook indicated that, if anything, investors may have placed too high an initial value on new technologies, overvaluing the new, and undervaluing the old. We showed that an industry value rotation strategy helped lean against this tendency, and historically had generated superior returns. Finally, a self-explanatory chart of the evolution of equity markets, and how the US has dominated throughout the past years:.

Christ sakes Fizzy, that chart makes me dizzy! That is one of the many many reasons the US market will never go down again. You have three choices, buy stocks and partake in the free money, short stocks and go bankrupt or stay out of the market and try to actually earn a living. It are all bubbles now. Today, it's totally different. A divi is pretty fucking rare right now and if they give you one, it's peanuts.

Elliott Wave Chart Blog - Elliott Wave & Stock Market Timing Theory and Charts as of March 2,

They should make the same graph but with PE numbers as a value and we'd be looking at a very steep pyramidin the last decade. If you measure the Dow against the price of gold, the Dow comes in at approximately The Dow reached its peak, measured in gold, in , at 49 ounces. However, the dollar is only doing well against other currencies, because many other currencies are in trouble and may soon collapse.

The dollar is therefore just the best looking horse in the glue factory. In this light, the present glow of the Dow dims considerably.

Somewhere on CNBC there's a guy using that as evidence that the markets are not over-valued on an historical basis. This is not even an issue of the cleaner dirty shirt anymore. Of course I'm speaking of the 'exorbitant privilege' I should have started buying Japanese equity futures in and then gone short in The US and UK and Germany before WWI are the countries that made the industrial world. It is no surprise that the US and UK together still dominate the world markets.

Also we speaking fucking English.

Want to see something curious and interesting? Here is a trash dump worker crawling through mud as he beats all hedge funds since The world is changing faster than ever before. Humans are at the edge of a fundamental change in what it means to be productive. My humble predictions are as follows:.

Semi-skilled labor will be largely useless eg. Highly skille d people specially in future growth industries such as robotics, AI, life-extension technologies, nanotechnology, space industries, deep analysis software, bio-technology, Internet 3.

Human society is going through a very major re-set regarding the purpose and function of government.

The daily drivel on teevee is largely a reflection of the upcoming uncertainties in the form, purpose and function of government. This will most likely happen organically, and not necessarily by some evil mad-man.

The end calculation by the ruling class is simple: Said grunts will soon be replaced by more intelligent robots. Therefore, there will be no purpose whatsoever to the grunts to the future society. The elites will dispose of them, either slowly, or over a period of a few generations. Moral implications aside, it is clear that the near future earth will have a MUCH smaller population and be highly technological.

Coming back now to the economy of the future: The idea of "employment" or a "job" has no meaning even today to the billionaire class. The elites do not, even now, fill out job applications or "Obamacare forms". The concept of a "job" is based on the scarcity model of today. The fact that at this time since another human is generally involved in producting the stuff you need, there is a significant "cost" of that "stuff". Labor is the basic reason that necessities have a "cost" for all practical purposes.

So, the future for those that survive the controlled culling that will arrive in a couple of decades is rather bright. In sum, on a long enough timeline, the survival rate of "labor class and their progeny" drops to zero.

The meek shall not inherit the earth but rather the elites will. Because they a few hundred million highly skilled humans that are relevant to the future economy control the future.

The narrative of this article is trying to establish that if you invest in new industries, you will be wealthy in the future. There is only one problem, namely how to determine exactly which new industries and specific companies to invest in. For example, if you had invested in FlyingCarCo-X in , would you be wealthy now?

Or if you invest in FlyingCarCo-Y today, will you be wealthy in the future? The only valuable datum from this article is that US has been able to amass a remarkable fraction of all world asset inflation between Here's our Cookie Policy.

How to report offensive comments. Home Contributors Newsletter Donate More Store ZH-TShirt Glossary Archive Manifesto RSS. CNN's Jim Acosta Throws Dramatic Tantrum Over Sean Spicer's Silent Press Briefing by ZeroPointNow - Jun 19, Inflation is no longer in stealth mode by GoldCore - Jun 20, 5: Feb 21, 4: Some brief observations from Credit Suisse: Credit Suisse Japan Nationalization Equity Markets. Printer-friendly version Feb 21, 4: Comment viewing options Flat list - collapsed Flat list - expanded Threaded list - collapsed Threaded list - expanded.

Date - newest first Date - oldest first. Select your preferred way to display the comments and click "Save settings" to activate your changes. Logan 5 not verified Feb 21, 4: BullyBearish Logan 5 Feb 21, 4: Fizzy Head BullyBearish Feb 21, 4: A chart showing a devalued currency over a year period Zorba's idea Fizzy Head Feb 21, TheRideNeverEnds BullyBearish Feb 21, 5: Sudden Debt BullyBearish Feb 21, 6: Also, interest rates where normally valued.

Zorba's idea BullyBearish Feb 21, Justin Case Logan 5 Feb 21, 4: BigFatUglyBubble Justin Case Feb 21, 4: Aye, and a finely polished turd it is. Let's see how shiny we can get it.

A History Of The US Stock Market From To In Three Charts | Zero Hedge

Arnold BigFatUglyBubble Feb 21, 4: DownWithYogaPants Arnold Feb 21, 6: NoDebt Justin Case Feb 21, 4: Somebody please get me out of this trash dump! The USA is, literally, rotting like Rome circa AD. Consuelo venturen Feb 21, 5: JLO Feb 21, 4: Smerf Feb 21, 4: Do you have a chart showing how many charts you have on this page? Emergency Ward Melgibsonyellsfreedom Feb 21, 6: Consuelo Feb 21, 5: JailBanksters Feb 21, 5: Who says Printing your own money to go shopping isn't profitable.

Zorba's idea esum Feb 21, EternalAnusocracy Feb 22, My humble predictions are as follows: Unskilled labor will be totally useless within the next 15 years. Jus7tme Feb 22, Create new account Request new password. To prevent automated spam submissions leave this field empty. Zero Hedge Reads Acting Man Alt-Market Benzinga Boom Bust Blog Capitalist Exploits China Financial Markets Chris Martenson's Blog Contrary Investor Daneric's Elliott Waves Dr.

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