U.S. stocks now comprise 42% of the Russell Global index, down from a high of 59% in 1999, according to Russell Investments. International stocks comprise 58% of the global index, up from 41% in 1999 and emerging markets equity represent 12.4%, up from 3.2%.
International growth has been impressive over the past decade, and is most astounding in developing economies, Rob Balkema, portfolio analyst at Russell, said in the release. By the end of 2006, total GDP of the developing economies overtook the U.S., making up 28.9% of (total global) GDP compared to 27.5% for the United States. These trends have continued in magnitude and direction in 2007 and into 2008.
But U.S. stocks have continued to increase in value. The market cap of the Russell 3000 was $16.8 trillion in June 2007 vs. $12.6 trillion in 1999.