Day: June 4, 2024

Is the US stock market overvalued?

The US stock market capitalization to GDP ratio is at an impressive 187%. Although it still remains below the record of 199% in 2021, the 40% growth rate in just two years makes us cautious. Nominally, the total capitalization of the US stock market is approaching its all-time high of $53 trillion, which underscores the presence of the US market at the forefront of growth compared to other countries’ markets. For comparison, the ratio of global stock market capitalization to GDP (excluding the US) is only 61%. Another illustrative ratio is the gold price to the S&P 500 index, which currently stands at 0.45. This contrasts sharply with the ratio of 1.69 during the debt ceiling crisis in August 2011 and the staggering ratio of 2.75 in August 1979, when Paul Volcker became Fed chairman during the stagflation crisis. Gold would be worth more than $14,000 an ounce if today’s ratio were the same as in 1979. Do you think we should expect a crisis in the next 5 years? https://preview.redd.it/tk12xbdbal4d1.png?width=1280&format=png&auto=webp&s=e586b2e3bf5f850cb6067213a754e73a90797e32 submitted by /u/dll_crypto [link] [comments]

Chris Weston: 🇯🇵 A solid rally in the JPY across the board – USDJPY now 154.83

BoJ talking about a near-term bond purchase slowdown US data is showing signs of cooling and the exceptionalism story is debated (a USD negative) the market is very short of JPY, notably as its role as the funder for carry positions https://preview.redd.it/1luopv6qgj4d1.png?width=680&format=png&auto=webp&s=da0cfda70c534ba2f2db61096d277fb338831e91 submitted by /u/XGramatik [link] [comments]