By Alexander Green The stock market is shrinking…
And that fact should change how you invest.
According to Wilshire Associates, which compiles benchmarks for U.S. stock markets, the number of public companies peaked at around 7,500 in 1997.
Last year, that number dropped to about 3,600.
In fact, since 1970, the number of public companies has dropped 52% while the S&P 500 has increased 3,628% (including dividends).
Despite the decrease in the number of publically traded companies, the stock market has moved in one direction… up.
This indicates that fewer and fewer companies are driving the big indexes. And those that do are established names like Amazon, Apple, Exxon …read more
