Cumulative assets of the five biggest investment companies in the U.S. accounted for 85.44% of the country’s gross domestic product, according to data gathered by Buyshares.co.uk, based on the current US GDP of $21.5 trln.
The data shows that Fidelity has the highest assets at $8.3 trln, representing 38.6% of GDP. Charles Schwab is second with assets worth $4.05 trln or 18.84% of the United States GDP.
Morgan Stanley’s current assets account for 14.41% at $3.10 trln, Wells Fargo is fourth with $1.6 trln in assets representing 7.4% of the current United States GDP, and TD Ameritrade has the fifth-highest assets at $1.32 trln or 6.1% of the GDP.
Cumulatively, the assets amount to $18.37 trln or 85.44% of the US GDP as of the first quarter of 2020.
Buyshares.co.uk’s research also overviewed the United States gross domestic product from the first quarter of 2019 to the first quarter of 2020. The GDP fell in the first quarter of 2020 to $21.53 trln by 0.89% from $21.72 trln recorded in the fourth quarter of 2019.
In the first quarter of 2019, the US GDP stood at $21.09 trln and rose to $21.34 trln in the next quarter. By the third quarter, the GDP rose by 0.9% to $21.54 trln in the next quarter.
The Buyshares.co.uk report highlighted the impact of the Covid-19 crisis on the US economy.
According to the report, “the drop in the United States GDP in the first quarter of this year can be attributed to the effects of the coronavirus pandemic. The pandemic has resulted in human and economic hardship across the United States. For example, from mid-March, over 26 million Americans filed for unemployment with the US witnessing historic declines in business activity and consumer confidence.”
The US economy has begun to show signs of recovery after the Federal Reserve intervened with stimulus packages and support for businesses. Already, the stock market is showing signs of recovery after hitting historical lows.