I thought this was going to be more comforting than it turned out to be. Although, I have to say that it’s a lot more comforting now that I’ve added today’s market close.
Total market cap as a percent of GDP has reached its lowest level since 1995. But 1995 seems to mark the beginning of some different valuation paradigm. Why? What changed? Is it a real change, or the beginning of what’s now ending?
GDP data from the BEA, total stock market capitalization is from the US Census Bureau, except for today’s number which I extrapolated from the end of Q2-08 amount using the change in the Wilshire 5000 index.