Email of the day on market cap to GDP
Warren Buffett uses the ratio of the market capitalisation of all listed US equities to US GNP (or is US GDP?), as a measure of the under or overvaluation of listed US equities in an overall sense. Where would such a ratio, and its long-term historical chart, be easily available in the internet? How about showing the chart in the Chart Library? Thanks in advance.
Thank you for this suggestion which is already in the Chart Library. One consideration however is that while market cap data for the US market is updated regularly it is only available from 2003 on Bloomberg so that limits the historical perspective we can access. Additionally, GDP is updated quarterly in arrears so it is going to be a lagging indicator at best.