Innovation Independence
This year we celebrate the 243rd birthday of the U.S. Since its founding the U.S. has been renowned for its democracy and capitalist system that embraces change and innovation. These factors have been the catalysts of the U.S.’s robust stock market, which outstrips that of any other nation worldwide.​​

Chart for AOM​​

  • Of the approximately $85 trillion in global stock market capitalization, the U.S. represents nearly 40% or over $32 trillion. This is significantly more than the roughly 25% of worldwide GDP for which the U.S. accounts.

  • The U.S. share of global market capitalization is more than twice that of its nearest competitor, China. More impressive is that the U.S. commands more than two thirds of global market capitalization in growth-oriented industries such as software and biotechnology.

  • But will the U.S. remain dominant in the future? The U.S. has one very strong advantage: innovation. The U.S.’s share of research and development spending among U.S. public companies is higher than its share of market capitalization—a sign that the U.S. may likely continue to lead in growth and change.


The views expressed are the views of Fred Alger Management, Inc. as of July 2019. These views are subject to change at any time and they do not guarantee the future performance of the markets, any security or any funds managed by Fred Alger Management, Inc. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities.

This material must be accompanied by the most recent fund fact sheet(s) if used in connection with the sale of mutual fund shares.

Risk Disclosure: ​Investing in the stock market involves gains and losses and may not be suitable for all investors. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Many technology companies have limited operating histories and prices of these companies’ securities have historically been more volatile than other securities, especially over the short term. Technology companies may also face increased competition, government regulation, and risk of obsolescence due to progress in technological developments.​​​​

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