Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (51120)	3/10/1999 9:56:00 AM
From: Cynic 2005	Respond to of 132070

<<US mkt is an unprecedented 150%.>> Stop duping the public with these incorrect numbers. -g- I have posted, with proof, that stock market is valued at least 190% of the GDP! WIll shortly append a link to this note. #reply-7741508

To: Mike M2 who wrote (51120)	3/10/1999 10:46:00 AM
From: Eggolas Moria	Read Replies (2) \| Respond to of 132070

Regarding the matter of market cap to GDP ratio, I fail to see the causal connection between the ratio and measures of valuation. Every time a strategist has brought it up and I've asked the question, the answer has been, "because it's worked in the past as an indicator." Well, so did the super bowl indicator. GDP is a measure of economic output. Market cap is a function of the number of public traded companies and their valuation. Thus far, no one has been able to explain the linkage in fundamental terms. Moreover, when I first read the alarms about this ratio it was in the late 1980s or early 1990s by the Bank Credit Analyst. So much for its value as an indicator.