US Stock Market Cap-to-GDP Ratio Reaches Record 238%
The US stock market capitalization relative to GDP hit an all-time high of 238%, with the market value surging to $75.7 trillion versus an economy of $31.8 trillion.
SPX
The ratio of US stock market capitalization to GDP has climbed to a record 238%, according to data shared by The Kobeissi Letter. This compares to a prior dot-com bubble peak of approximately 148%.
The total value of the US stock market has risen to an all-time high of $75.7 trillion, far outpacing the $31.8 trillion size of the US economy. The ratio has increased by 38 percentage points since the March 30th bottom in the S&P 500.
- Since the 2008 Financial Crisis, the stock market has grown at five times the rate of the underlying economy.
- The metric is now 90 percentage points above the dot-com bubble peak.
The post notes that asset owners are benefiting disproportionately from this divergence.
Source: The Kobeissi Letter