[OC] Stock Marketcap as % of GDP by countries (2020)Submitted by Ill_Fisherman8352 t3_zrnjbo in dataisbeautiful
Ill_Fisherman8352 OP t1_j14119q wrote
Reply to comment by Markymarcouscous in [OC] Stock Marketcap as % of GDP by countries (2020) by Ill_Fisherman8352
Yes above 110% is usually considered overvalued and stock markets can mean revert. US was at 195% in the chart , now its somewhere around 130%. Its better to be below 110% for sustainability.
redditseddit4u t1_j17w5oj wrote
It’s an interesting stat but using it to interpret ‘good’ or ‘bad’ is a big leap given public companies on stock exchanges are mostly international/global companies. For example in the case of Switzerland or Singapore, all their large public companies are multinationals - so the fact that their combined market cap is higher than GDP doesn’t mean much in terms of good/bad.
libertysailor t1_j1kzrug wrote
What is that 110% rule of thumb based on?
Darrow723 t1_j1pshtw wrote
I don't know.
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