Nasdaq Capitalization as a % of GDP

Compared to historical norms, Nasdaq market capitalization is significantly above median levels relative to GDP.

The Nasdaq’s median percentage of GDP has averaged 61.8%; its now over 100%. As the chart below shows, the big aberrational periods have been due Fed bubble inflation: first in 1998-2000; then more recently in 2006-07.

The present Zero Interest Rate policy (ZIRP) is helping to inflate a 3rd market bubble:

>
11-09 Total Maket Cap
Chart courtesy of Ron Griess of The Chart Store.

Print Friendly, PDF & Email

What's been said:

Discussions found on the web:

Read this next.

Posted Under

Uncategorized