Stock markets are shrinking

REUTERS/Tyrone Siu

• The US stock market has de-equitised, a fancy term that basically means that companies are buying more shares than they are issuing, every year since 2011. It's shrunk 2.3% since 2018.
• This is natural, according to Citigroup strategists led by Robert Buckland. "This is a rational response to a radical shift in the cost of equity and debt financing," the team said in a note.
• Meanwhile, a second equity market, one for private equity, is growing just as the public market is shrinking.

The stock market is shrinking. 

More specifically, the US stock market has shrunk by 2.3% since 2018, according to Citigroup strategists led by Robert Buckland, adding to shrinkage in every year since 2011. In the UK, the stock market has shrunk 3% since 2018, meanwhile. See the rest of the story at Business Insider

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