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The global equity market is being reshaped by our ever-evolving digital world

Right! I just did this data visualisation for my client Capital Group. This is a really interesting topic. The global stock market has radically changed over the last 20 years and this piece is meant to capture one of the stories behind it.

So, what is it about? Idea-driven companies. If you haven't heard of them yet, buckle up.

By tracking the market capitalisation of the MSCI AC World Index for its top 20 companies, we can see just how much the global equity market has been reshaped by our ever-evolving digital world.

Here's the thrilling part about these idea-driven companies:

• Thanks to the internet and mobile tech, these companies aren't just growing - they're conquering the globe at a speed we've never seen before.

• They breathe data. It's their lifeline, helping them make smarter decisions, boost their offerings, and reach more people than ever.

• They're the trailblazers, the game changers. Think of Apple, who turned a phone into an icon, or Amazon, which turned the simple act of buying a book into a journey through an endless digital library.

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1. Idea-driven companies come to the fore

Source: Capital Group

It’s a pretty interesting story. Of course, there are a few points to consider. Firstly, the economic environment was conducive for these types of companies – falling interest rates and rampant asset price inflation have benefitted growth stocks, including what we might consider idea-companies.

Idea companies are rooted in the future; low interest rates have the effect of pulling the future closer to the present, as future projected cash flows are discounted less.

Nevertheless, these companies are part of our future, and their ballooning size and immense capacity to generate revenue reflect this reality. Knowledge is power, and the largest of these idea-companies have huge patent portfolios which act as formidable competitive moats.

Here are my closing remarks. These aren't just companies; they're the architects of tomorrow's digital and technological economy, moulding our future as they develop. If you want to dive deeper, here’s an article by Capital Group that will take you right into the heart of this topic.

Coming up:

• American attitudes towards China have shifted dramatically

• The majority of Americans say they are worse off financially under Biden

• Top 25 companies in the S&P 500 by market cap

• It has been a tough couple of years for the IPO market

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