stock market

An expert interview about Capital Markets

The greatest place to put your money is in the stock market. The stock market, on the other hand, is a peculiar place with a lengthy history. There are several fascinating facts about the stock market. It’s incredible. The stock market has a plethora of intriguing data. I’d like to share 13 of these stock market statistics with you today. Some of these will most likely astound you! At the very least, they surprised me when I found out about it!

Knowing all of this information will not make you a better investor. But isn’t it still fascinating to understand more about the location where you’re putting your money? I was startled by a few of them. I hope you find them fascinating!

The stock market has been around for almost 400 years!

The New York Stock Exchange is not the oldest stock exchange in the world! Many people believe that the stock market is a relatively new phenomenon. Most people believe it began about 100 years ago. The stock market, on the other hand, is rather old.

The stock market was first proposed in the Netherlands in 1602. Paper shares were first issued by the Dutch East India Company. These paper shares might be sold and bought by shareholders. This firm was the first to introduce the notion of a stock exchange. As a result, the Amsterdam Stock Exchange, the world’s oldest stock exchange, was founded. The stock exchange is currently known as Euronext.

The world’s stock exchanges number in the hundreds!

The New York Stock Exchange (NYSE) or the NASDAQ are the two most well-known stock exchanges in the world. These are the world’s two largest stock exchanges. However, there are more than 60 stock exchanges throughout the globe.

Following the two American behemoths, three major Asian stock exchanges round up the top five. The Japan Exchange Group (JPX), the Shanghai Stock Exchange (SSE), and the Hong Kong Stock Exchange are the three main stock exchanges in Hong Kong. Interestingly, despite the fact that Switzerland is a small nation, the Swiss Stock Exchange is still ranked 13th on the list. The Seychelles Stock Exchange is the smallest stock exchange in the world. It has four separate stocks with a market value of around $100 million.

The stock market is 70% likely to rise in any given year.

The stock market is more likely to rise than fall in any given year. For example, the Dow Jones Industrial Average (DJIA) has risen 70% of the time in the previous 100 years. The Standard & Poor’s 500 (S&P500) has gained 77 percent of its value during the previous 40 years. This is an important distinction.

Of course, this is merely data from the past. However, this has been going on for almost a century. This has a decent possibility of continuing. One of the reasons why Dollar Cost Averaging (DCA) is a bad idea is because of this. Indeed, DCA is banking on the market’s decline. The stock market, on the other hand, is unlikely to do so.

The month of October is the most turbulent.

In the stock market, there is a legend about October. There’s even a phenomenon known as The October Effect. The stock market, according to popular belief, falls more in October than in other months. In October, there were two major accidents. Both the 1929 Great Crash and the 1987 Crash occurred in October.

However, if we look at the data over a lengthy period of time, we can see that this influence is not substantial. In October, there were more bear markets finishing than beginning. This information adds to the intrigue. And most people have forgotten about these two accidents since they happened so long ago. Fewer and fewer individuals believe in the October Effect as a result of these arguments.

According to research, the stock market’s most volatile month is October. The stock market has more significant fluctuations in October than any other month. As a result, you could expect a lot more volatility in October.

September is the most difficult month.

We just discovered that many individuals believe in The October Effect. September is the worst month for the stock market, based on the same principle. Since 1950, the Dow Jones Industrial Average (DJIA) has lost 0.8 percent on average. During the same time span, the Standard & Poor’s 500 index has dropped 0.5 percent. This is a far smaller drop than in previous months.

We have no idea why this occurs. It’s possible that some individuals may cash their tax returns towards the end of the summer, triggering a drop in the economy. Another possibility is that some traders will be on vacation in August. When they return, they sell part of their holdings to cash in their profits. As a result, there was some selling pressure and a decrease. However, they are just hypotheses. The September Effect is, in general, an abnormality.

Should you sell everything now, or wait until September? No, no, no, no, no, no, no, no, no, no This is just an average of many years’ worth of data. It’s possible that things will change in the future. Market timing should not be dependent on such averages.

The United States controls 40% of the global stock market.

With 60 stock exchanges throughout the globe, the global stock market is massive! However, the stock market in the United States is by far the largest! As of 2018, the stock market in the United States accounts for 40% of the global stock market! It is far greater than the second-largest stock market in the world, Japan, which accounts for 7.59 percent of global stock market capitalization. The fact that a single nation controls so much of the stock market is very remarkable.

Final words

Based on these facts, you know a lot about capital markets. Keep these facts in mind and make sure that you get the most out of it. 

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