The stock market is not just where shares of publicly listed companies trade, it’s perhaps the most vital component of the free market economy. While companies use the stock market to sell shares for the purposes of raising funds for their operations, there’s something else that is so essential to the sector. The market offers everyday investors the opportunity to buy shares and grow their investment.
However, the market is vast and it might pay for an investor to have a grasp of the broader market via access to the latest stock market news, right information, particularly knowledge of how the market works. Indeed, notable facts and statistics for key areas of the market can help one formulate important decisions before they are in stocks.
These 25+ most interesting stock market statistics for 2022 offer a great starting point heading into 2023.
The world’s largest stock exchange may be in the United States, but Europe takes the mantle when it comes to the largest stock exchange by age. According to Statista, that honour goes to the Frankfurt Stock Exchange, founded in 1585 (437 years ago).
The New York Stock Exchange and London Stock Exchange are second and third oldest stock exchanges in the world at 229 and 220 years old respectively. However, 11 stock exchanges have clocked 100+ years.
Despite the COVID-19 pandemic hit to the global equity market in 2020, the total market capitalization worldwide hit a peak of $121 trillion in late 2021. As of November 2022, the global market cap of all companies listed on stock exchanges was at $105 trillion. (Statista)
The major stock exchanges in the United States account for the greatest share of the stock market cap in 2022. As of November 2022, the total market capitalization of all publicly listed US stocks was $46.4 trillion, up from 40.7 trillion in 2020.
The United States, China, Japan, Hong Kong, and Canada are the world’s largest stock markets, with the listed companies in these countries accounting for 74.43% of global market capitalization at over $92 trillion.
The New York Stock Exchange in the United States is the world’s largest stock exchange. NYSE had a stock market capitalization of over $23 trillion as of November 2022. The NASDAQ and the Shanghai Stock Exchange completed the top 3 at the time with just under $20 trillion and $7 trillion respectively.
The New York Stock Exchange, Nasdaq Stock Exchange, Shanghai Stock Exchange, Tokyo Stock Exchange and the Shenzhen Stock Exchange are the world’s top 5 markets. A total of 19 stock exchanges around the world are ranked with $1 trillion or higher worth of market capitalization.
US-based technology giant Apple Inc. (NASDAQ: AAPL) is the world’s largest company by market capitalisation. The iPhone maker reached a landmark $3 trillion market capitalization in January 2022, and although it’s currently set at $2.37 trillion it still ranks as the world’s largest corporation by market cap.
The global trillion-dollar club in the stock market only has five members as of November 2022. Apple leads with over $2.3 trillion in market cap, having briefly hit $3 trillion earlier in the year. The others with $1 trillion+ are:
Saudi Aramco – $1.955 trillion Microsoft – $1.807 trillionAlphabet (Google) – $1.234 trillionAccording to CompaniesMarketCap, Amazon.com, Inc. (NASDAQ: AMZN) was out of the trillion-dollar club as of November 2022 with $942 billion.
Warren Buffet’s Berkshire Hathaway Inc. (NYSE: BRK.A) is the world’s most expensive stock, valued at $477,019 as of 25th November 2022. The reason for this scenario is that the company has never done a stock split, which gives the single share that much value.
The growth in the stock market over the years has coincided with the introduction of numerous technology tweaks. One of these developments has been automation of trades, with 2022 stock market statistics showing that more than 80% of all trades on Wall Street are enhanced by advanced technological features that improve trading speed and accuracy among others.
As the tumultuous 2022 stock market moved towards its close, financial research group Bespoke Investment shared stats showing that more than 86% of S&P stocks were trading above the 50-day moving averages as of November. At the same time, 100% of S&P 500 Consumer Staples stocks had broken above their 50-DMAs.
The S&P 500 has had an average return of 11.8% annually since 1957. The return in 2022 could however be lower given the bear market that sees the index nearly 17% down year-to-date.
The average recovery time for the stock market after a 5-10% crash is historically 30 days or so. If the pullback places within 10-20%, it usually takes about four months for markets to recover. However, for a bigger sell-off in the 20-40%range, then markets have historically needed up to 15 months to recover.
While stocks decline an average of 36% during bear markets, the bull market gains have averaged 114%.
Normally, bear markets are more short-lived lasting about 289 days, or approximately 9.6 months. In comparison, bull markets last an average of 991 days or about 2.7 years.
Historically, various factors have contributed to the slow recovery of stock markets after a full blown crash as that seen in 2008. Usually, the market navigates the reversal for 151 months, or about 13 years.
The S&P 500 rose more than 26% through 2021 to 4,766.18 points in December for its highest value on record. These came amid a bull market run buoyed by easy money flowing through the economy following the COVID-19 pandemic. Historical data however shows the S&P 500 is 17% lower as of November 2022, and was oscillating around 3,976.
While stock market corrections are frequent and happen every two or so years, the S&P 500 has historically soared an average of 8% in the 30 days that follow the correction hitting a bottom. In fact, gains after the correction bottom have hit 24% or more on average just one year later.
In February 2022, the S&P 500 index fell into “correction” territory, declining more than 10% from its highs in December of the previous year.
Market corrections have historically occurred once every 2 years and involve declines of between 10% and 20% from a stock index’s last all-time high. There have been 20 stock market corrections since the 1980s, with only six occasions when a decline has surpassed 20% – this included the 2020 and 2022 corrections that were bearish. In 2020, the stock market declined 34% while in 2022, the S&P 500 fell more than 20% by June 2022 to enter bear market territory.
US stocks usually dip after the second year of a presidential term, dropping to an average of 4.8% from .5.2%. However, the third year has usually seen a huge spike, with average gains reaching 12.8%. The fourth year sees average S&P 500 returns of 5.7%.
More people whose household income is $100,000 or higher invest in stocks. According to a Gallup survey of 2021, it was established that nearly 89% of adults in the above category owned stocks. In comparison, only 25% of those with a household income below $40,000 said they owned stocks.
The number of Americans who reported owning stocks in 2022 was at 56% of the adult population, translating to about 145 million people. The percentage growth showed a very slight upside from the 55% of US adults who said they owned stocks in 2020. However, the numbers were still lower compared to the 63% in 2002 and 60% in 2007.
While Millennials have been shown to have invested more in cryptocurrencies for instance, the comparative percentage who own stocks is very small. According to data by the Federal Reserve, Millennials owned just 2.6% of all US stocks by Q2 of 2022, compared to Gen X’s 26.5% and Baby Boomers’ 55%.
Diversification is a key trend in 2022 and data shows nearly 10% of US households have added shares of various global companies to their portfolios
A small number of Americans, the wealthiest 10% of the population, owned 89% of all US stocks in 2022, according research details from late 2021. The top 1% on the rich list reportedly added $6.5 trillion to their wealth in stocks during the pandemic, far more than the $1.2 trillion gained by the bottom 90% of the population that owned 11% of all US stocks.
Warren Buffet has stakes in over forty securities. However, just 12 stocks make up 89% of the Oracle of Omaha’s portfolio. As of 15 November 2022, Berkshire Hathaway’s $347.2 billion was invested in just a dozen assets, with the top three being 39.6% in Apple (NASDAQ: AAPL), 11.2% in Bank of America (NYSE: BAC), and 9.2% in Chevron (NYSE: CVX).
The rest of the top 12 of Buffet’s portfolio as of November 2022 are:
Coca-Cola (NYSE: KO) 7%American Express (NYSE: AXP) 6.7%Occidental Petroleum (NYSE: OXY) 4.2%Kraft Heinz (NASDAQ: KHC) 3.5%Moody’s (NYSE: MCO) 2.1%TSMC (NYSE: TSM) 1.4%BYD (OTC: BYDD.F) 1.3%Activision Blizzard (NASDAQ: ATVI) 1.3%HP (NYSE: HPQ) 1.1%Stock market statistics don’t tell the whole story, but they offer snippets of what and how the market is. In 2022, the bear market has the S&P 500 looking to close in the red, but as stats show, the index has gained an average of 114% every bull market and has seen about 12% in average upside movement since 1957.
All in all, the market has a lot more statistics that the best course of action is for one to do their own due diligence for every company they consider a potential investment opportunity.
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