Ian Goldin<\/a>, the former World Bank vice-president, now a professor of globalisation and development at Oxford University, said the growing concentration of capital in a handful of highly valued US technology companies had left investors worldwide vulnerable to a market correction.<\/p>\n\u201cThe very inflated valuations of companies increasingly biasing the New York Stock Exchange towards a very small group of companies, which under no possible circumstances could be generating revenues commensurate with their valuations, is a worrying trend,\u201d Goldin said at the Sina Finance Global Capital Summit.<\/p>\n
He said it was unsurprising to see a recent correction in SpaceX\u2019s valuation, describing it as a predictable consequence of stretched market pricing.<\/p>\n
Although the US economy accounts for less than 20 per cent of global gross domestic product, more than 70 per cent of globally listed equities and bonds remain concentrated in US markets, Goldin said, leaving investors with limited opportunities to diversify away from US assets.<\/p>\n
People around the world will sufferIan Goldin, Oxford University<\/p>\n
If a broad-market correction were to take place, the fallout could not be contained, Goldin warned, adding that the impact would become increasingly global.<\/p>\n","protected":false},"excerpt":{"rendered":"A coordinated push towards global market diversification is urgently needed to shield savers from a potentially dangerous valuation…\n","protected":false},"author":2,"featured_media":553081,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[576,2102,72,114,113,1813,240,234014,61,60,1388,7891,119579,28182,23221,234015,2306,90,20094],"class_list":["post-553080","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-asia","tag-beijing","tag-business","tag-china","tag-economy","tag-europe","tag-hong-kong","tag-ian-goldin","tag-ie","tag-ireland","tag-new-york-stock-exchange","tag-north-america","tag-oxford-university","tag-pan-gongsheng","tag-peoples-bank-of-china","tag-sina-finance-global-capital-summit","tag-spacex","tag-us","tag-world-bank"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/553080","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=553080"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/553080\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/553081"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=553080"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=553080"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=553080"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}