I think things become simpler when you look at the sum of all stocks, versus particular ones. Then, you only need to consider the market cap of the entire stock market, and what makes it change over time.
The economy is much bigger than the stock market. Money flows from small companies to larger one as the economy consolidates—since the former are more likely to be publicly traded than the latter, that makes the market become bigger.
It’s easier to invest in the stock market now than in the past. Since it’s accessible to more people, then more people’s money can be put in it. So, the market cap goes up.
Finally, as inequality increases, more of a fraction of wealth is disposable, and therefore can be invested. That makes the market grow as well.
I’m sure there are many other reasons along these lines.
I think things become simpler when you look at the sum of all stocks, versus particular ones. Then, you only need to consider the market cap of the entire stock market, and what makes it change over time.
The economy is much bigger than the stock market. Money flows from small companies to larger one as the economy consolidates—since the former are more likely to be publicly traded than the latter, that makes the market become bigger.
It’s easier to invest in the stock market now than in the past. Since it’s accessible to more people, then more people’s money can be put in it. So, the market cap goes up.
Finally, as inequality increases, more of a fraction of wealth is disposable, and therefore can be invested. That makes the market grow as well.
I’m sure there are many other reasons along these lines.