Jan 08, 2019 23:32:11 (IST)
"If you look at the American stock market for one, this decade has basically tripled in value," Ruchir Sharma says.
"And it has tripled in value at a time where rest of the world stock markets have, including India in dollar terms, have practically done nothing," he says.
"I think there has to be some recognition here that there is so much first talk of American declinism and we heard so much of that a decade ago that counter to that conventional wisdom, America has done really well.
"In fact, today the American economy is about 25% of the global economy but the American stock market is about 55% of the global stock market value - the gap is 30% points. That shows how well the American stock market has done.
"The US has never been as powerful as it has been today in terms of the use of the US dollars: how strong the US dollar is, how strong the American stock market had been until the decline began last October compared to the rest of the world and just in general about how American finance has dominated the world over the last decade.
"My point here is the fact that each boom sows the seed of its own decline. Once a boom gets sort of really wild, a lot of complacency sets in. Lots of excesses get built up and then something else comes in and fills in the gap until they recover and get back to the drawing board and clean the excesses out," he says.
"And it has tripled in value at a time where rest of the world stock markets have, including India in dollar terms, have practically done nothing," he says.
"I think there has to be some recognition here that there is so much first talk of American declinism and we heard so much of that a decade ago that counter to that conventional wisdom, America has done really well.
"In fact, today the American economy is about 25% of the global economy but the American stock market is about 55% of the global stock market value - the gap is 30% points. That shows how well the American stock market has done.
"The US has never been as powerful as it has been today in terms of the use of the US dollars: how strong the US dollar is, how strong the American stock market had been until the decline began last October compared to the rest of the world and just in general about how American finance has dominated the world over the last decade.
"My point here is the fact that each boom sows the seed of its own decline. Once a boom gets sort of really wild, a lot of complacency sets in. Lots of excesses get built up and then something else comes in and fills in the gap until they recover and get back to the drawing board and clean the excesses out," he says.