Posts filed under “Investing”

Chart of the Week: Market Value of Equities as a % of GDP

Today’s chart comes courtesy of Vanguard Funds. It shows the
total value (NYSE, Nasdaq and Amex) as a percentage of GDP. Historically, the
market has run into trouble when, after a long Bull run, it penetrated the
average Market Value as a % of GDP to the upside. Mean reversion would be the
rationale for some of the bigger Bear Markets following theses spikes (shaded
areas).
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Market Value of Equities as a % of GDP

Equities_versus_gdp

Source: Vanguard
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Note that after 1990, this measure completely detached from
its prior range. This implies that there may be yet more mean reversion in
equities’ near future.

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Quote of the Day:

“The things which hurt, instruct.”

-Benjamin Franklin

Category: Investing

Asset Class Performance

Category: Economy, Investing

Apprenticed Investor: “How My Doin?”

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Inflation’s Demise Has Been Exaggerated

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Misleading Fund Performance?

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Fundies Blow Delphi Call

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Walk It Off

Category: Investing, Markets, Psychology, Technical Analysis

Chart of the Week: Bloomberg REIT Index

Category: Investing, Real Estate