Doug Short has recently published a post depicting this “stock market capitalization to GDP” metric.
As seen in his August 3, 2017 post titled “Market Cap to GDP: An Updated Look at the Buffett Valuation Indicator” he shows two different versions, varying by the definition of stock market capitalization. (note: additional explanation is provided in his post.)
For reference purposes, here is the first chart, with the stock market capitalization as defined by the Federal Reserve:
(click on charts to enlarge images)
![U.S. stock market cap to GDP](https://www.economicgreenfield.com/wp-content/uploads/2017/08/Dshort-8-3-17-Market-Cap-to-GDP-Federal-Reserve-e1501787248531.png)
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Here is the second chart, with the stock market capitalization as defined by the Wilshire 5000:
![U.S. Market Cap to GDP](https://www.economicgreenfield.com/wp-content/uploads/2017/08/Dshort-8-3-17-Market-Cap-to-GDP-Wilshire-5000-e1501787417313.png)
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As one can see in both measures depicted above, “stock market capitalization to GDP” is at notably high levels from a long-term historical perspective.
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The Special Note summarizes my overall thoughts about our economic situation
SPX at 2472.84 as this post is written
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