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Markymarcouscous t1_j13w3fw wrote

Does this stat mean anything though? Like. Is it better to have more or less or the middle

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Ill_Fisherman8352 OP t1_j14119q wrote

Yes above 110% is usually considered overvalued and stock markets can mean revert. US was at 195% in the chart , now its somewhere around 130%. Its better to be below 110% for sustainability.

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redditseddit4u t1_j17w5oj wrote

It’s an interesting stat but using it to interpret ‘good’ or ‘bad’ is a big leap given public companies on stock exchanges are mostly international/global companies. For example in the case of Switzerland or Singapore, all their large public companies are multinationals - so the fact that their combined market cap is higher than GDP doesn’t mean much in terms of good/bad.

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