Is it that time already? Here is an updated look at NYSE/Nasdaq Market as a percentage of nominal GDP, via The Chart Store:
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click for larger graphic
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
"Dollar depreciation leads to higher inflation and ultimately forces foreign creditors to question their rationale and indeed their sanity for continuing purchases of U.S. Treasuries." -Bill Gross
Signs continue that European markets are getting tired. The Spanish and Italian stock markets, big beneficiaries of the sharp decline in their bond yields over the past few months are falling to the lowest since Feb 1. The European bank index is at a 1 1/2 week low after earnings reports from Commerzbank and Credit Ag (RBS bouncing although reporting weaker than expected earnings) were disappointing. This market action is in spite of the German IFO business confidence figure which rose to a 7 month high coming in a touch above expectations and Italian consumer confidence which bounced more than...
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March 22nd, 2011 at 12:00 pm
>> Is it that time already?
D’ya mean “time for the market to take a dump”?
(Why do you ask? Do you have travel plans this week, Mr. Ritholtz?? Do tell…)
March 22nd, 2011 at 12:15 pm
Let me “demonstrate my ignorance” by asking: Does this includes ADR’s and/or ETF’s traded on the NYSE?
March 22nd, 2011 at 12:39 pm
GDP is a useless construct which obscures the fact that our society has not made any progress in decades. What possible meaning could a number have that sums useless consumption, a haircut for example, with the construction of a capital asset, a hydroelectric plant for example, which benefits society for a hundred years? Over recent decades, we have had increasing of the former at the expense of the latter… no progress… but GDP looks just fine. I’m not sure what useful information can be derived from comparing market cap to this measurement.
March 22nd, 2011 at 2:20 pm
We’ll make “progress” the moment we can squeeze a large mass of you know whats out the back end of the financial system. And if you don’t know what the “you know whats” are, you’re probably one of them.
lol
March 22nd, 2011 at 3:08 pm
I wonder with the increasingly multi-national nature of our companies, with more and more profit being derived overseas, if this chart is as relevant as it once was… KO, XOM, even WMT….
March 22nd, 2011 at 3:25 pm
Can the chart store folks overlay P/E somehow to see how much of the growth is attributable to multiples ?
March 22nd, 2011 at 4:17 pm
when someone does creative, brand new, technical analysis that no one has heard of before…
i ask what for? ….i only want what someone actually believes and trades on
or does that dotted line not mean sell?
March 22nd, 2011 at 8:56 pm
GDP = sum of all monetized US economic activity. If relatively more or less economic activity is gifted, bartered, or under-table in cash, GDP will be affected.
NYSE/NASDAQ market cap = sum of most US-listed public stock capitalizations, which is not the same as the market cap of all US public companies. If there is a change in the relative split between privately-held and public corporations, then the NYSE/NASDAQ market cap will be affected.
So if you take two loosey-goosey measures and divide one by the other to create a time series, what do you get? Goose poop?