Labor Day is a celebration of the American labor movement and is dedicated to the social and economic achievements of workers; it stands as a tribute to the contributions workers have made to the strength, prosperity and well-being of our country. ("Labor Day." Wikipedia. Wikimedia Foundation, 28 Aug. 2014. Web. 28 Aug. 2014).
So, for those who thought Labor Day was just a long holiday weekend to signify the end of summer, back to school and retail sales – there is just a bit more behind it.
The picture below illustrates the MAGNITUDE of the United States stock market and further supports how the blood, sweat and tears of the US worker has made this the single most important economy and market in the world. The value of US companies combined makes up nearly half of the total value of the world’s stock markets. Apple (AAPL) has a greater value than all of the listed companies in Russia alone!
That’s not to say these other markets and economies don’t play a very important role in the greater global economy – they do; much of our country’s business success is tied to the global marketplace through consumerism and manufacturing.
Another thing this chart reminds us is the need to be diversified with our investment portfolios. As amazing as it is that we have 49% of the total stock market capitalization (capitalization is just another word for value), it is just as amazing that 51% is outside of the US. Now this doesn’t mean that 49% of our stock portfolios should be invested in the US and 51% outside, but it does remind us that there are opportunities for growth beyond US borders.
So this Labor Day weekend take pride in knowing when you get up every morning and head off to work, you contribute to the overwhelming success of the US market and economy. Keep up the great work; all of our financial futures depend on it! And for those of you have already paid your dues and retired, thank you!