What is the world’s largest industry? Is it technology, with Apple Computer and Google each eclipsing cities such as Chicago, Dallas and Washington DC in their market cap relative to a metropolitan gross domestic product? Is it big oil, with firms such as BP commanding a $121 billion market cap and a P/E ratio near 55. No, says a recent Macquarie Research report. The world’s largest industry is found in creating capital, an economic growth activity that has a much lower ratio to its overall size than other industries. Those on Wall Street and around the world have witnessed the…
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- With high-end estimates of capital creation rising in the US from $60 trillion in the 1990s to as much as $800 trillion depending on how derivatives are accounted, this is by far the largest industry
- The new world of monetary creation will leave traditional economic growth and fundamental analysis behind, Macquarie says
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