Sunday, October 6, 2024

Stock Market Capitalization To GDP – Through Q2 2024

“Stock market capitalization to GDP” is a notable and important metric regarding stock market valuation.  In February of 2009 I wrote of it in “Does Warren Buffett’s Market Metric Still Apply?

On the Advisor Perspectives’ site there is an update depicting this “stock market capitalization to GDP” metric.

As seen in the October 4, 2024 post titled “Buffett Valuation Indicator: September 2024” two different versions are displayed, varying by the definition of stock market capitalization. (note:  additional explanation is provided in the 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)

Stock Market Capitalization To GDP

Here is the second chart, with the stock market capitalization as defined by the Wilshire 5000:

Stock Market Capitalization To GDP

As one can see in both measures depicted above, “stock market capitalization to GDP” continues to be 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 5751.07 as this post is written

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