The New York Times article titled ‘The Stock Market Is Shrinking. That’s a Problem for Everyone‘, is getting a lot of play in the financial blogosphere this weekend. This fact is the one most have globbed onto:
In the 1990s, there were 8,000 public companies. Now there are fewer than 3,800. And the top 200 generate all of the aggregate profit.
I call bullshit on the ‘everyone’ part of the article. The shrinking stock market has not been bad for me and millions of others. It has been bad for certain investment banks and bankers. It is definitely a shame that our IPO system and public markets are not working for thousands of companies who decide to stay private longer.
It definitely explains why fintech has finally exploded.
This trend will not reverse course anytime soon.
I can see a day where I personally do not own fully publicly traded stocks. Back in July, Manu Kumar explained what was happening and I covered it on my blog as well by saying Nasdaq 10,000 is happening with or without public markets.
The New York Times is just catching up and adding some fear.
Also published on Medium.