Market Cap to GDP – a Somewhat Overlooked Indicator

One way to check if the market cap of American publicly traded companies has not disconnected altogether from their real incremental value is comparing their market cap to the total GDP. This ratio can be used to understand whether the market is overvalued – in the U.S, the lion share of the companies are publicly traded, at least the big ones, thus we can expect to find a correlation between both the movement and the size of the stock market

Continue Reading

Site Footer

Sliding Sidebar

Never Miss a Post!