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Yep.

Stockmarket capitalisation as a percentage of GDP AKA the Buffett indicator.

https://www.longtermtrends.net/market-cap-to-gdp-the-buffett...

Good luck, folks.

How valuable is this metric considering that the biggest companies now draw a significant % of revenue from outside the U.S.?

I'm sure there are other factors that make this metric not great for comparisons with other time periods, e.g.:

- rates

- accounting differences

I estimate you’re talking 25% from overseas.

If that bothers you, just multiply valuations by .75

Doesn’t make much difference even without doing the same adjust for previous eras.

Buffett indicator survives this argument. He’s a smart guy.

Besides your chart, another point along these lines is that the article cites Azhar claiming multiples are not in bubble territory while also mentioning Murati getting essentially infinite price multiple. Hmmmm...

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