As of the end of March, the total price of shares on the world’s stock exchanges reached a record amount in the entire history of finance — approximately $106 trillion. It has increased over the past year by approximately 60 percentage points. As a result, the aggregate share price already exceeds the gross domestic product (GDP) of the planet ($83.8 trillion in 2020).
This is the conclusion reached by analysts of the Japanese business newspaper Nikkei. In their opinion, such numbers create a feeling of a dangerously overheated market.
Of the aggregate share price of $106 trillion, $45 trillion falls on the US stock exchanges. Shares there in the year to the end of March rose by about 70 p.p. largely due to the easing of fiscal policy in the United States and large budgetary injections designed to revive the economy in the context of the pandemic, the newspaper said.
By the way, the American S&P 500 index for the first time in history crossed the 4000 point mark. As a result of trading, the S&P 500 climbed 46.98 points to 4019.87 points, the Wall Street Journal reported.
According to Japanese experts, the global rise in share prices is associated with the flow of investors’ funds to the stock markets, who are waiting for an increase in profits against the background of overcoming the pandemic and recovering the world economy.