in remarkable schedule the ratio of U.S. market capitalization to GDP.
you can guess about the conclusion. We have been overrated since the 1990s..
time of addition NASDAQ omit. well, not everyone knows, that more companies mean more capitalization.
but, there is one basic point that should be understood by everyone initially.
capitalization / gdp ratio is not used to determine fair benchmarks for share prices!!!!!!!
this ratio is used to indirectly judge the degree of development of the financial market. all. dot.
if, when calculating this ratio, we neutralize the change in the number of public companies, and for international comparison, somehow weigh on the share of public companies in the profits of the entire corporate sector (or something else), then you can already with a stretch aim at overcooked / oversold.
