Market Cap To Gdp Ratio Chart
Displays two long term charts depicting the stock market capitalization to gdp ratio through q2 2020 and comments about the trends.
Market cap to gdp ratio chart. However the number of listed and traded companies then were much lower than today. The total market valuation is measured by the ratio of total market cap tmc to gnp the equation representing warren buffett s best single measure. The four valuation indicators we track in our monthly valuation overview offer a long term perspective of well over a century.
As of 08 07 2020 this ratio is 176 6. Market cap to gdp is a long term valuation indicator that has become popular in recent years thanks to warren buffett. The ratio has been quite stable over fy15 19 in the 70 80 band.
This ratio since 1970 is shown in the second chart to the right. The s p 500 consists of 500 large us companies. Just like the wilshire 5000 it is a capitalization weighted index.
The s p 500 consists of 500 large us companies. For comparison purposes the s p 500 to gdp ratio is shown here as well. Back in 2001 he remarked in a fortune magazine interview that it is probably the best single measure of where valuations stand at any given moment.
Gross domestic product back to 1948. This interactive chart shows the ratio of the dow jones industrial average to u s.