What is the impact of Product Equity Value© on Stock Markets?    

The stock markets across the globe will enjoy the single most transformation of all financial and economic innovations. As of June 2008 the US Dow Jones 30 enjoyed a collectives market value in excess of the $4 trillion, twice the GDP of Brazil and greater than most of the countries on the globe.

For the 155 million people in the USA work force this $4 trillion works out to be $25,806 per worker on just 30 publicly traded companies and there are about 18,600 publicly traded companies in the USA.

There was and is a direct correlation between a country’s GDP and the value of its stock market if the country has a stock market. Therefore countries as of June 2008 could be divided between the countries whose GDP were less than the value of their stock markets and countries who GDP was more than their stock exchanges. The USA, China, Japan, UK, Canada, Jamaica, Israel, Singapore, and Russia are sample countries who GDP exceeded the value of their stock exchanges in June 2008 according to the CIA Fact Book.

Countries such as India, France, Spain, Brazil, Philippines, Germany, Nigeria, and Indonesia are sample countries whose stock markets was substantially less than their GDP.

With Product Equity Value© all global citizens are now integral parts of the economic mainstream where the value of each countries GDP and the value of its stock exchange is a macro measure of the well being of their citizenry.

With Product Equity Value© the individual global consumers choose their per capital incomes based on their individual consumption choices when buying from companies who initiate initial public offering programs where consumers equity value is realized immediately starting with preassembled captive consumers purchasing new IPO’s (initial public offerings) products and services.

The primary reason why the major stock markets across the global in 2008 lost 31% to 65% of its value is that the consumer is not the major stakeholder. The venture capital, investment banks and institutions are the major stakeholders. I it is this three-way relationship that has cased the markets to drop:

2008 – MAJOR MARKETS FALLS (Without PEV©)

New York - down 33.84%
London - down 31.3%
Paris - down 42.7%
Frankfurt - down 40.4%
Mumbai - down 51.9%
Singapore - down 49.2%
Sydney - down 41.3%
Hong Kong - down 48.3%
Shanghai - down 65.2%
Tokyo - down 42.1%

With PEV© global markets would be 200 times the June 2008 levels.