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.

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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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