How come when the US Stock Market goes down, all the other ones in the world do, too?
(Why does the American Stock Market seem to affect all the other countries? Does it have anything to do with them being the most powerful country and having the largest economy in the world?)
Answer:
Our markets also go down when theirs do. It wasn’t always this way, but as we move to a more global economy the national markets become more and more interrelated. In the academic world they use a “correlation coefficient” to measure how much different markets move in tandem. Google it if you’re interested.