Bespoke Investment Group presents a variant of the above chart in a blog post on its website: America’s share of world market capitalisation has dropped sharply since around March 20, mirroring the rise that occurred over the preceding month.
To what extent is this a U.S. story as opposed to a rest-of-the-world story?
The next chart breaks down the returns of MSCI’s United States Index versus those of MSCI’s All Country World Index excluding the United States since Feb. 19, when the ratio between the two (the green line in the chart above) really started accelerating to the upside.
Arguably, the majority of the story has been a rest-of-the-world one, as markets outside the U.S. catch back up after a period of underperformance. Of course, that’s been made easier by the recent sell off in the U.S.