Chart Store week continues at the Big Picture. Today’s TCS graph is the NYSE Market Capitalization, shown over time as a percentage of US GDP:


click for larger graphic


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Category: Markets, Technical Analysis

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

14 Responses to “NYSE Market Capitalization as % of GDP”

  1. barniebrains says:

    True, but many of the companies that make up the NYSE are more global than they were prior to 1996 so comparing the ratio of NYSE market capitalization to US GDP should be expected to grow modestly. However, none of the market movements don’t seem anything but modest, so I agree with you.

  2. Inigo Montoya says:

    Also, the percentage of the population that owns stocks has risen from 10% to 70% (or something close to that). I want to like this statistic, but can’t.


    BR: Yes, but they own a mere pittance — the median US family equity exposure was under $33k.

    The big boys own most of the real assets, especially including stocks

  3. JimRino says:

    What percentage of China’s GDP needs to be added to make sense of this data?
    What date did NAFTA take effect?

  4. MayorQuimby says:

    Barn- That’s irrelevant. Think about what you just wrote in the context of what gdp is.

  5. MayorQuimby says:

    Can’t wait for this bs to end and for us to break that dotted line. Hopefully we do it quickly and end the charade.

    “Wealth effect” my assssssss.

  6. Super-Anon says:

    With regard to stock values and GDP. Remember the wise words of Andy Xie:

    ‎”Indeed, most people who invest in the stock market get poorer. Look at Japan, Korea and Taiwan: Even though their per capita incomes have risen enormously over the past three decades, investors in these stock markets lost money. Economic growth is a necessary but not sufficient condition for investors to make money in the stock market. Most countries, unfortunately, don’t possess the conditions for stock markets to reflect economic growth. The key is good corporate governance. It requires rule of law and good morality. Neither is apparent in most markets.”

  7. Andy C. says:

    Wouldn’t an enterprise approach be more relevant than an equity value approach in doing this comparison over time? A company can finance itself using some combination of debt and equity. I suspect that companies prior to the 90s were more highly levered overall than the average company today, since low-leverage tech companies comprise a higher proportion of the market. So the split in enterprise value today would favor equity, creating a higher overall equity value relative to GDP.

  8. mark says:


    Do we understand you correctly that since good corporate governance, rule of law and good morality are in short supply in the US we should expect, like the Japanese, to see the our indexes down 80% (that would be S&P 300) at some point?

  9. ewmayer says:

    Looks like Herr von Bernankenstein truly is hoping that when it comes to asset-price bubbles, the third time is the charm. The funny thing, after successive stock-market and RE bubbles, the FedHeads couldn’t even come up with a novel asset to bubble-ize.

    “Well, we haven’t done stocks since 2000, so let’s do that again, just spread it among the indices a little more, put lipstick on it and keep repeating, ‘this time is different’.”

    Superposing a plot of “Number in Workforce” on this also makes for a nice perspective on the likelihood of durability of the present “recovery”. Castles built on the sands of ever-increasing borrowing…

  10. Morgan White says:

    How about making the same adjustments to the NYSE market cap as discussed in the Lowry’s piece?

  11. jreacher says:

    Are you all the same posters who said the same things about the same chart, TWO years ago? Back then, one of them had some profane words to say about AAPL’s price. Hehe…wonder if he missed the whole move?

    Have you?


  12. macrotrader603 says:

    jreacher, be careful you will hit a nerve with some of the nay-sayers!

    yes, we can tell who missed the big moves…sounds like MayorQuimby missed the fastest double in recorded history…

    here is a lesson for some of you more opinionated fellow bloggers…

    stop trying to force your incorrect conclusions on the market, because it doesn’t mater what you think, only what the market does, some of you are trying so hard to be “right”, but the only thing that matters is to be on the right side of the market

    the market is never wrong, so stop trying to fight it

  13. rootless says:

    jreacher, macrotrader603,

    Are you the same posters who said the same about the stock market in 2000 and 2007 and who felt all superior toward “the nay-sayers” in the same way back then as you do now? The memory of the ones who believe that the market was “never wrong” is apparently very short.