Market Capitalization as Percentage of GDP

Cycles in Stocks and Market Indices

Market Capitalization as Percentage of GDP

Postby RayTomes » 01 Sep 2011, 02:00

Barry Ritholtz looks at this in his article at ... aq-as-gdp/

Although we cannot deduce with any certainty from two and a half cycles, it sure looks like we are about to repeat the troughs of the 1940s and 1970s/80s as regards market capitalization of stocks (relative to GDP). The end of the "irrational exuberance" is within sight. On this basis we can expect the first trough within a couple of years, with a second trough 6 to 8 years later.
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