The ratio of market capitalization to GDP

22.04.2024
22.04.2024

The ratio of market capitalization to GDP is also known as the Buffett indicator. In an interview with Forbes in December 2001, Warren Buffett said that the ratio is a useful tool for assessing the overall valuation of the stock market, where a range of 75–90% is reasonable; more than 120% say the stock market is overvalued.

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