Given the excitement over the tremendous economic potential of international markets — particularly developing economies — it can be easy to overstate the current size of many economies.
The table below shows the total market capitalizations of several international exchanges, along with the S&P 500 stock with a comparable market cap. The far right columns indicates the weight given to that company in the S&P 500.
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Data Source: World Federation of Exchanges
In other words, if the aggregate Athens Stock Exchange were to be added to the S&P 500 it would make up less than a sixth of a percent of the benchmark. The entire Greek public market cap would be the the 147th largest individual holding in an S&P fund, falling between Illinois Tool Works (ITW) and Emerson Electric (EMR):
Image may be NSFW.
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When evaluating developments in Greece and other international markets, it’s important to keep the size of the economy in perspective.
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