Market Cap To Gdp By Country

Updated on 2020-06-03: Brazil (%) yearly 1980 - 2019: 65. China's economy, in contrast, has a much larger industry and agriculture component. The ratio of the Dhaka Stock Exchange’s market-cap to the GDP remained low in the region amid lack of listing of new big issues and price erosion of large-cap companies. The darker the shade, the higher the value. 3 trillion Trending Stories. Based on historical ratio of total market cap over GDP (currently at 144. 47% by 2007-08. It may even decline. As of 2020-06-24 03:05:04 PM CDT (updates daily): The Stock Market is Significantly Overvalued. According to Bank of America’s research, women’s equality could add between $12 trillion to $28 trillion, or about a 13% to 31%, boost to global GDP by 2025. 2% Source: MSCI Barra; data as of November 30. The ratio of the Dhaka Stock Exchange's market-cap to the GDP remained low in the region amid lack of listing of new big issues and price erosion of large-cap companies. Let us look at an example. Or at least amber. Why Use Nominal Instead of Real GDP and Market Cap? So this is another question I received last time. In 2010 the European Union faced a crisis when Greece threatened to default, potentially causing a domino effect, of highly leveraged nations like Spain and Italy doing the same, which. This study explores the impacts of country risks on the relationship between energy consumption and financial development for 79 countries. 0 percent in Dec 1985. 6 (58% less). 16 facts about Chinese Economy 2020 at a Glance Rojgar Samachar - 6/18/2020 11:19:00 AM and $19,504 (PPP; 2019 est. The market capitalization of all the listed companies in the country divided by the gross domestic product (GDP) of the country gives us this ratio. The market cap-to-GDP ratio was 79% in the preceding year. 28 per cent,representing that the total listed wealth in the domestic capital markets was just 23. The Market Cap to GDP ratio (also known as the Buffett Indicator) is a measure of the total value of all publicly traded stock in a country, divided by that country’s Gross Domestic Product (GDP). The top 10 countries with the largest economies, denoted by real Gross Domestic Product (GDP), represent approximately 50% of the world's total population and make up almost 65% of the world's total GDP. For instance, ratio of financial institutions' assets to GDP, ratio of liquid liabilities to GDP, and ratio of deposits to GDP. 7 % \begin{aligned} &\text{Market Cap to GDP} = \frac{ \$26. GDP Should Be Corrected, Not Replaced Jan 17, 2018 Urs Rohner The hazards of relying solely on gross domestic product as a measure of overall economic activity have become obvious over time, especially as corporate profits have outpaced GDP growth in key economies. 3 trillion Trending Stories. The market cap for all listed BSE stocks rose to Rs 34 lakh crore on Monday. GDP per capita next year will be $65,393, followed by $70,066 in 2022 and $74,501 in 2023. The combined market cap of listed companies in China is now equivalent to 80 per cent of the country's latest annual GDP (on current prices) against India's 76 per cent. The capitalisation of UAE capital markets has reached AED895. The bank sees developing economies like Indonesia, Turkey, Brazil, and Egypt all moving up the ladder - and by 2030, it. 1985 - 2019. These benefits will also improve by up to. As of 2018, market capitalization in the United States of America was 30,436,313 million US dollars that accounts for 45. 86 USD with a minimum of 1509. PPP takes into account the relative cost of living, rather than using only exchange rates, therefore providing a more accurate picture of the real differences in income. This is perhaps the easiest and most straightforward of the capitalization rules, as there are virtually no exceptions or other complications. 23, the market capitalisation of BSE listed firms. The market-cap-to-GDP ratio is currently at its lowest level since the global financial crisis of 2008-2009. 3 software services provider, may report a. 89% increase from 2018. In other words, if the stock market is worth more than gross domestic product (GDP), stocks are overvalued and vice versa. ThaLoStats 6,203 views. 4: Oil-importing countries attracted more FDI as a share of GDP than oil-exporting countries 2012 Figure 2. While India’s GDP at $2. Back in 2001 he remarked in a Fortune Magazine interview that "it is probably the best single measure of where valuations stand at any given moment. The success and the applicability of the market-cap-to-GDP ratio is higher when the market-cap reflects a much larger share of the economic activity in the country, said the Motilal Oswal report. 0 percent in Dec 1985. When you get to a certain point in countable numbers meaning can become obscured by the magnitude. Ideally, we would like to have the data points for Global Market Cap and Global GDP for the same time period, but GDP is lagged by 1 quarter, as GDP takes longer to calculate and compile than do. 8 Income and use of income accounts of the total economy of South Africa, 2005 and 2013 13 1. The Market Cap to GDP ratio (also known as the Buffett Indicator) is a measure of the total value of all publicly traded stock in a country, divided by that country’s Gross Domestic Product (GDP). Microsoft, the world's most valuable public company, has a market cap of $1. Cap/GDP: If corporations get a larger and larger percentage of their profits from oversees, then the Capitalization/GDP ratio becomes less relevant. We now estimate (based on a Q2 GDP estimate) the metric at 164 percent, which is 20 points higher than the dot. Total market cap to GDP shows we might be in a bubble, but the measure is flawed. 10 Companies That Are Bigger Economic Powers Than Most Countries. Income Approach to Calculating GDP. 8%), it is likely to return -2% a year from this level of valuation, including dividends. Higher allocation to low-debt countries. market to 20 other countries you may be interested in investing. Desai: To take forward Akash's point the market is not even as cheap as February 2016, forget 2013 - in 2013 the market became very cheap. The four main components of GDP are personal consumption expenditures, gross private domestic investment, net exports and government spending. 00005 percent. However, the number of listed and traded companies then were much lower than today. From the graph I estimate that the ratio from 1924 to 1992 was about 50% (area under the curve method). GDP Should Be Corrected, Not Replaced Jan 17, 2018 Urs Rohner The hazards of relying solely on gross domestic product as a measure of overall economic activity have become obvious over time, especially as corporate profits have outpaced GDP growth in key economies. Warren Buffet once said that the percentage of total market cap to US GNP is the "best single measure" for stock market valuation. World's GDP is $80,934,771,028,340 (nominal, 2017). Developed markets, and particularly English-speaking markets, have much higher market-cap weights than GDP weights, with the U. UAE market cap rises to $244bn in October, 63% of GDP. Exhibit 1: Five top over-and underweighted countries in the MSCI ACWI GDP Weighted Index Country Weight Difference (GDP - Market Cap) Top Overweights China 5. The market-cap-to-GDP ratio is currently at its lowest level since the global financial crisis of 2008-2009. 3 trillion in the OECD area and USD 0. GDP per capita comparisons. Hong Kong's nominal GDP is $372 billion which is about the same as those of. Population figures based on United Nations data. com bubble peak, almost 15 percent on a proportional. 2 % 2018: yearly. 6 Gross Domestic Income (GDI) 489. That explains, why some countries like the US, UK, and Singapore have a ratio much above 100. is more than that of the country s GDP. Top 30 Countries / Economies by Market Capitalization of Listed Companies (% of GDP) - Duration: 4:34. Current market cap to GDP ratio stood at 54%, last seen only in the 2008 crisis. Exhibit 1: Five top over-and underweighted countries in the MSCI ACWI GDP Weighted Index Country Weight Difference (GDP - Market Cap) Top Overweights China 5. The … More. 32 percent in 2007. Nominal GDP means the Gross Domestic Product not adjusted for inflation. The nation is renowned for its textile, shoe, cement, lumber, iron ore, and tin sectors. 95 % whereas Honduras has lowest year-on-year average growth rate at -39. The market cap of all the listed companies in the country divided by the gross domestic product (GDP) of the country gives us this ratio. Graph and download economic data for Stock Market Capitalization to GDP for United States (DDDM01USA156NWDB) from 1996 to 2017 about market cap, capital, stock market, GDP, and USA. But how closely do stocks actually track economic growth in the country they are headquartered in? Not very closely is the surprising answer. For example, the GDP of UK is about $2. The ratio of the Dhaka Stock Exchange's market-cap to the GDP remained low in the region amid lack of listing of new big issues and price erosion of large-cap companies. GDP per capita comparisons. For comparison, the world average in 2018 based on 63 countries is 70. The next section describes the materials and methods that are employed in. Comparing the current market cap-to-GNI ratio (also known as Buffett Indicator) of a country to its historical average can be used to estimate the current valuation and expected returns of a nation’s stock market. cover the MSCI Emerging Markets (MSCI EM) and MSCI All Country World (MSCI ACWI) Indices. What was the average capitalization to GDP ratio prior to the globalization era, say before 1992. This article includes a list of continents of the world sorted by their gross domestic product (GDP), the market value of all final goods and services from a continent in a given year. 29% and the maximum of GDP is 157. The oil-price shock blow to the country’s FX earnings and fiscal revenues are major risks ahead. International investors can find the same data for all countries using tools provided by the World Bank and other international organizations. It is proposed by Warren Buffet to know whether market is over valued wrt economy. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used. 2 hours ago. Back in 2001, he remarked in a Fortune Magazine interview that "it is probably the best single measure of where valuations stand at any given moment. Hong Kong's nominal GDP is $372 billion which is about the same as those of. GDP w eight d equal weig. Statistics Canada said GDP in March fell 7. Netherlands Has Its Own GDP Problems — Contributed to Fall of Government » S&P 500 Market-Cap to US GDP from 2000. China has the world's fastest-growing major economy, with growth rates averaging 6% over 30 years. moneycontrolcom: #MarketsWithMC | "In the past whenever India's market cap to #GDP has fallen below 60%, the next 3-5 year returns have been extremely strong," says Prashant Jain, of HDFC AMC, in 'The Market Podcast' @KshAnand. The ratio, which is used to determine whether the overall market is undervalued or. India's current market cap of all listed stocks is around $2. It may be noted that his total net worth is more than the GDP of the 49 poorest countries in the world and more than the GDP of Hungary. “overweight” by more than 13 percent on a GDP basis. Hong Kong is the top country by market capitalization (% of GDP) in the world. MARKET CAP FOR EQUITY MARKET ASSET ALLOCATION " Vish Sarma Nov 10, 2010 at 04:14 pm EDT at 16:14. 2 0 1 9 Weight of the three largest countries over time In all regions investigated, weighting countries based on their market capitalization (the most common approach in the context of index calculation) underperformed in the long term compared to GDP or equal weight country allocations. This measure can be thought of as an economy wide price to sales ratio. As benchmark equity indices move from one record high to the next, indicators that reflect the value of listed firms vis-a-vis fundamental indicators are flashing red. 89% increase from 2018. 5%, just a few months before the irrational exuberance bubble burst. Image: howmuch. The Market Cap to GDP ratio (also known as the Buffett Indicator) is a measure of the total value of all publicly traded stock in a country, divided by that country's Gross Domestic Product (GDP). 8%, compared to 147. 1 GDP of Mauritius, 2012 at current prices 22. The present market capitalisation is approximately US$ 36 billion which is 13 per cent of the country's gross domestic product (GDP), according to the Dhaka Stock Exchange. The bank sees developing economies like Indonesia, Turkey, Brazil, and Egypt all moving up the ladder - and by 2030, it. 4 | GDP by production approach Methodological introduction 1. According to Bank of America’s research, women’s equality could add between $12 trillion to $28 trillion, or about a 13% to 31%, boost to global GDP by 2025. This trend is common across countries and mirrors increases in other financial and price indicators, but happens at a much faster pace. Market Cap to GDP = (Market Capitalization of the Country / GDP of the Country)*100 For Example: The total market capitalisation for all stocks listed on the BSE is Rs135. This chart puts into perspective the GDP of various countries with the market capitalization of some U. Definition: A ratio used to determine whether an overall market is undervalued or overvalued. If the market cap hovers below the country's GDP, people consider the market to be undervalued. This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. Netherlands Has Its Own GDP Problems — Contributed to Fall of Government » S&P 500 Market-Cap to US GDP from 2000. 10/06/2020 - Preliminary data in Pension Funds in Figures show that pension funds assets stood at USD 32. The market cap for all listed BSE stocks rose to Rs 34 lakh crore on Monday. Public debt is equivalent to 29. 3% of the total market capitalization of all equities markets worldwide on 10/21/14, up from 33. When we use the market-cap-GDP ratio to do cross-country comparisons, we come to strange conclusions. I just took some, kind of the latest year I could get data, shows the market cap in trillions of US dollars by country. 95 % whereas Honduras has lowest year-on-year average growth rate at -39. -based economist and director of the Land Research Trust, Fred Harrison. The nation is renowned for its textile, shoe, cement, lumber, iron ore, and tin sectors. The average value for Poland during that period was 25. Re: Wilshire 5000 market cap / GDP exceeds dot-com peak « Reply #44 on: January 18, 2020, 07:47:36 AM » Large cap Japan was at 120x CAPE ratio and while market was at 70-80x PE; to compare the US stock market of today to 1989 Japan is to believe that company earnings will decline by some 60-75% via an extreme combo of margin compression. Definition: Market capitalization (also known as market value) is the share price times the number of shares outstanding (including their several classes) for listed domestic companies. 3% Canada-1. If the Ratio is : 50% to 75%, the market is said to be modestly undervalued. By market cap, London Stock Exchange is ranked 3 out of the 144 stock markets we track. , in chained 2010 dollars). GK, General Studies, Optional notes for UPSC, IAS, Banking, Civil Services. Economy Corporate sector, Foreign direct investment (FDI), GDP and spending, Household accounts, International trade, Leading indicators, National income, Prices, Productivity Education Education attainment, Education resources, International student assessment (PISA), Students, Teachers, Youth and the labour market. The valuation of the world’s financial assets is estimated at 378% of global GDP, with 89. According to a regression of GDP on market capitalization in 2010, virtually all developed countries had _____ per capita GDP than (as) predicted by the regression. 3 trillion while the real GDP is $2. Since China's transition to a market-based economy through controlled privatisation and deregulation, the country has seen its ranking increase from ninth in 1978 to second to only the United States in 2016 as economic growth accelerated and its share of global nominal GDP surged from 2% in 1980 to 15% in 2016. NI is the sum of the following components: Labor Income (W) Rental Income (R). A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States in the year noted. This page presents GDP forecast figures by country for the period from 2020 to 2024 as estimated by the IMF in its latest edition of World Economic Outlook (WEO) as of October 2019. By market cap, London Stock Exchange is ranked 3 out of the 144 stock markets we track. Market Cap to GDP is a long-term valuation indicator for stocks. The Market Cap to GDP ratio (also known as the Buffett Indicator) is a measure of the total value of all publicly traded stock in a country, divided by that country’s Gross Domestic Product (GDP). That explains, why some countries like the US, UK, and Singapore have a ratio much above 100. Companies that make up the US market earn a substantial amount of profit overseas. Hong Kong's nominal GDP is $372 billion which is about the same as those of. Such variations make the comparison across market cap and GDP very difficult. But the ratio sank to as low as 60% in 2003 and 2009, when the country of the rising sun seemed to have plunged into permanent darkness. 6 Gross Domestic Expenditure (GDE) 489. The success of market capitalization to GDP ratio is higher when the market cap reflects a much larger share of economic activity. World Development Indicators (WDI) is the primary World Bank collection of development indicators, compiled from officially recognized international sources. As benchmark equity indices move from one record high to the next, indicators that reflect the value of listed firms vis-a-vis fundamental indicators are flashing red. Brazil is among the world's ninth-biggest economies of the world in 2020, recovering from a socialism-focused economy with a nominal GDP of $1. The market-cap-to-GDP ratio is currently at its lowest level since the global financial crisis of 2008-2009. Economically, the gross domestic product (GDP) can be defined as the total value of goods and services (counted without duplication) that are newly produced in the economy during an accounting period, generated net incomes to the economy and are. 5 billion ($244 billion), up 5. Gross domestic product (GDP) is the market value of all final goods and services from a nation in a given year. 38% increase from 2018. That is basically a vague sounding smartspeak for checking out the market capitalization of listed companies (as a % of GDP). The latest value from 2018 is 27. The bounds testing for cointegration is used to detect a long-run causality while the VAR Granger causality/Block exogeneity test is used for investigating short-run causations. India's market cap to GDP ratio reached 95%. Say, the US GDP is approximately $17 trillion and the market cap is $22 trillion. That is, once again, we. As of 2020-06-24 03:05:04 PM CDT (updates daily): The Stock Market is Significantly Overvalued. Secondly, India’s share of world market cap at 2. The First Letter in a Sentence. 3% Germany 3. The success of market capitalization to GDP ratio is higher when the market cap reflects a much larger share of economic activity. In other words, if the stock market is worth more than gross domestic product (GDP), stocks are overvalued and vice versa. This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. The ratio, which is used to determine whether the overall market is undervalued or. The success and the applicability of the market-cap-to-GDP ratio is higher when the market-cap reflects a much larger share of the economic activity in the country, said the Motilal Oswal report. 10 Companies That Are Bigger Economic Powers Than Most Countries. So the United States leads the pack, for now. Market cap-to-GDP ratio. And the market capitalization to GDP ratio is the ratio of stock to flow like the price to sales. Some of the big tech companies are now bigger than some countries in terms of market capitalization. As we can see below, re-slicing the FTSE All-World market-cap weighted index to reflect the relative size of each country's economy results in a vastly different looking pie. Emerging Markets Account for 80% of Global GDP Growth But Only 10% of World Equity Market Cap; Commodities Formed Half of MSCI Emerging Markets Index in 2008, Now Down to 15% ; Higher market cap, but lower portfolio exposure. Market Cap to GDP Ratio = (Value of All Listed Stocks in a country / GDP of the country) * 100 Thus, It is a measure of the total value of all publicly traded stock in a country, divided by the country’s Gross Domestic Product (GDP). This study explores the impacts of country risks on the relationship between energy consumption and financial development for 79 countries. The country with the highest value in the world is Hong Kong SAR, China, with a value of 1,053. European Union's Market Capitalization accounted for 54. A country is undergoing a boom in consumption of domestic and foreign luxury goods. A recent study of the Buffett's Market Cap to GDP Valuation Indicator was made by analyst Doug Short. As of 2018, market capitalization (% of GDP) in Hong Kong was 1,053 %. So the United States leads the pack, for now. 8% of the national GDP. Back in 2001, he remarked in a Fortune Magazine interview that "it is probably the best single measure of where valuations stand at any given moment. The numbers used in this analysis are adjusted to remove the effect of inflation on the level of GDP, producing what economists call “real” economic growth. The S&P 500 consists of 500 large US companies. Even though per capita figures give us more relevant data than simply GDP figures, they can be misleading. The US economy is much more services-oriented than the rest of the world. it is setup like this: 1. Top 30 Countries / Economies by Market Capitalization of Listed Companies (% of GDP) - Duration: 4:34. Making direct comparisons between developed markets and emerging markets can be difficult, however, because the latter tend to have less developed stock markets and lower market capitalization to GDP ratios. 47 per cent in financial year 2010-11 from 23. 1 \text{ trillion} }{ \$17. Top 10 Company Market Cap Ranking History (1998-2018. After a trough of 84. Its market cap is $279 billion. Reality check for Hezbollah supporters: All these countries combined GDP is less than HALF the market cap of Apple Inc. GDP: Get the latest Goodrich Petroleum stock price and detailed information including GDP news, historical charts and realtime prices. Market Cap to GDP = (Market Capitalization of the Country / GDP of the Country)*100 For Example: The total market capitalisation for all stocks listed on the BSE is Rs135. [further explanation needed. The market-cap-to-GDP ratio is currently at its lowest level since the global financial crisis of 2008-2009. These benefits will also improve by up to. Market Cap to GDP is a long-term valuation indicator that has become popular in recent years, thanks to Warren Buffett. Countries like Ecuador, Slovakia, Kenya. Total market cap to GDP shows we might be in a bubble, but the measure is flawed. The market cap to GDP ratio, or the Buffet Indicator as it is sometimes referred to, due to the fact that it was popularized by the famous investor Warren Buffet, compares the market capitalization of all publicly-traded stocks on a single market with the country's GDP. , in chained 2010 dollars). However, it should also be noted that the current market cap-to-GDP ratio is still lower than the 10-year average of 78%. For example, if a company has 4 million shares outstanding and the closing price per share is $20, its market capitalization is then $80 million. 6% Top Underweights USA-16. The nations with GDP figures immediately below. World's Largest Economies in 2030. The true market-cap-to-GDP ratio is slightly skewed. The bank sees developing economies like Indonesia, Turkey, Brazil, and Egypt all moving up the ladder - and by 2030, it. We now estimate (based on a Q2 GDP estimate) the metric at 164 percent, which is 20 points higher than the dot. "This ratio is insignificant in comparison with. 95 % whereas Honduras has lowest year-on-year average growth rate at -39. The bank sees developing economies like Indonesia, Turkey, Brazil, and Egypt all moving up the ladder - and by 2030, it. stock markets began around 1980. 5% then convert that to a decimal and 0. For instance, ratio of financial institutions' assets to GDP, ratio of liquid liabilities to GDP, and ratio of deposits to GDP. 6% Australia-1. Pension fund assets rose to USD 32 trillion in 2019 but COVID-19 impacts are set to reverse some of these gains. European Union's Market Capitalization: % Nominal GDP is updated yearly, available from Dec 1975 to Dec 2018. Both Exxon Mobil and Chevron took in greater revenues than the entire GDP of Romania. Reality check for Hezbollah supporters: All these countries combined GDP is less than HALF the market cap of Apple Inc. Market cap-to-GDP ratio = the market capitalization of listed shares / annual real GDP. The combined market cap of listed companies in China is now equivalent to 80 per cent of the country’s latest annual GDP (on current prices) against India’s 76 per cent. This page presents GDP forecast figures by country for the period from 2020 to 2024 as estimated by the IMF in its latest edition of World Economic Outlook (WEO) as of October 2019. Stock market capitalization, billion USD, 2018 - Country rankings: The average for 2018 based on 65 countries was 1040. [further explanation needed. That market cap is down by over $12bn on the same point a year ago, and over $15bn on the peak of Spotify’s public valuation, which reached $35. Graph and download revisions to economic data for from 1999 to 2012 about Tanzania, market cap, capital, stock market, and GDP. It basically represents the percentage of GDP which represents. 47% by 2007-08. How to calculate GDP?. GDP is now projected to fall nearly 53% in the second quarter, according to a Fed gauge. Back in 2001, he remarked in a Fortune Magazine interview that "it is probably the best single measure of where valuations stand at any given moment. The bubbles are sized proportionally to the GDP and market cap values; the greater the value, the larger the bubble. Meanwhile, according to emissions. Economically, the gross domestic product (GDP) can be defined as the total value of goods and services (counted without duplication) that are newly produced in the economy during an accounting period, generated net incomes to the economy and are. The United States remains the world's largest economy, but China is expected to take first place by 2032. 5 billion ($244 billion), up 5. (%) Parent Index Wt. Gross Domestic Product (GDP) is one of the most widely used measures of an economy’s output or production. equities accounted for 36.  Market Cap to GDP = $ 2 6. 2012 Figure 2. Aurobindo Pharm 768. 3% expansion market analysts had penciled in. For instance, ratio of financial institutions' assets to GDP, ratio of liquid liabilities to GDP, and ratio of deposits to GDP. corporations done outside the country from 1924 to 1991?. Top 10 Company Market Cap Ranking History (1998-2018. (%) Sector ALIBABA GROUP HLDG ADR CN 3. The idea behind this ratio is simple. That is, once again, we. [Note: Even though Global Development Finance (GDF) is no longer listed in the WDI database name, all. The Saudi Stock Exchange's (Tadawul) market capitalization relative to the country's real gross domestic product (GDP) dropped to 55 percent during the first quarter of 2016, its lowest level in 11 years, a new study by Argaam showed. This chart puts into perspective the GDP of various countries with the market capitalization of some U. While the economic crises brought upon the world by the COVID-19 epidemy continues to linger, the world's economy is gradually being dragged into recession, leaving most countries in a dire. For instance, the ratio of total market cap over GDP climbed to 355% in 1989, when Japan's economy was booming and nothing could stop the country of the rising sun. GDP is comprised of personal consumption, government spending, investments and net exports (exports minus imports). Gross Domestic Product (GDP) is one of the most widely used measures of an economy’s output or production. Net debt figure is the cumulative total of all government borrowings less repayments that are denominated in a country's home currency. As of 2020-06-24 03:05:04 PM CDT (updates daily): The Stock Market is Significantly Overvalued. A value above 100% indicates that the market is overvalued while a number close to 50% indicates that it is undervalued. Gross domestic product, or GDP, is often used as an aggregate indicator of the increase in a country’s standard of living or prosperity. The Conference Board is a global, independent business membership and research association working in the public interest Global Economic Outlook | The Conference Board The Conference Board uses cookies to improve our website, enhance your experience, and deliver relevant messages and offers about our products. We now estimate (based on a Q2 GDP estimate) the metric at 164 percent, which is 20 points higher than the dot. World's GDP is $80,934,771,028,340 (nominal, 2017). market capitalization is $19. The agency issued an early estimate for April, indicating output shrank by a deeper 11% on a month-over-month basis. 2 \text{ trillion} } \times 100. Poland: Stock market capitalization as percent of GDP: For that indicator, we provide data for Poland from 1995 to 2018. Some of the big tech companies are now bigger than some countries in terms of market capitalization. The stock market capitalization-to-GDP ratio is a ratio that measures the overall value of all publicly traded stock in a market in comparison to the country's gross domestic product (GDP). n The recovery of the capital markets during the financial year 2009-10 has brought this market cap to GDP ratio back to 100. For the sample of the seven countries, the average GDP per capita is 5271. The ratio has been quite stable over FY15-19 in the 70-80% band. Both Exxon Mobil and Chevron took in greater revenues than the entire GDP of Romania. GDP Contracts 4. PPP takes into account the relative cost of living, rather than using only exchange rates, therefore providing a more accurate picture of the real differences in income. Market capitalization of listed domestic companies (current US$) - Country Ranking. The Buffett Indicator is a simple method used to value the stock market. 16 facts about Chinese Economy 2020 at a Glance Rojgar Samachar - 6/18/2020 11:19:00 AM and $19,504 (PPP; 2019 est. Higher allocation to low-debt countries. Total market cap to GDP shows we might be in a bubble, but the measure is flawed. That was 0. 38% increase from 2018. Cross asset class data across markets in the NYSE Group and on the CTA and UTP nationally consolidated data feeds. 17 USD, the standard deviation is 2853. Nominal GDP is useful for large-scope GDP comparison, either for a country or region or on an international scale. Only 14 countries have annual GDP figures greater than Apple's market cap, which is just below the $1. cover the MSCI Emerging Markets (MSCI EM) and MSCI All Country World (MSCI ACWI) Indices. 8 billion surplus in financial services and insurance trade (excluding re-insurance, the financial services and. 8%, compared to 147. That is, once again, we. The latest value from 2018 is 27. In 2018, foreign direct investment in the industry totaled $1. All of the World's Stock Exchanges by Size. The present market capitalisation is approximately US$ 36 billion which is 13 per cent of the country’s gross domestic product (GDP), according to the Dhaka Stock Exchange. Total market cap to GDP shows we might be in a bubble, but the measure is flawed. If the Ratio is : 50% to 75%, the market is said to be modestly undervalued. California’s gross domestic product (GDP) increased by over 2% in 2013. Stock prices had seen a significant meltdown after that amid the global financial crisis. At 68%, the market cap to GDP is still lower that its 10-yar average. If it is higher than 100%, it indicates the stock market valuations may be expensive. The market cap-to-GDP ratio is primarily used to determine if the market as a whole is over or undervalued. The current U. Top 30 Countries / Economies by Market Capitalization of Listed Companies (% of GDP) - Duration: 4:34. Significance of (MCAP/GDP) Ratio: GDP (Gross domestic product) which indicates the value of the products produced by all the Indian companies in a year should always be greater than total MCAP or Market capitalization (No of shares * Current Market Price) or market value of all the companies in Indian stock market, because there were a huge number of companies or businesses in India compared. Market capitalization of listed domestic companies (% of GDP) from The World Bank: Data Learn how the World Bank Group is helping countries with COVID-19 (coronavirus). The market-cap-to-GDP ratio is currently at its lowest level since the global financial crisis of 2008-2009. 03% of the world's market capitalization. The market cap to GDP ratio, or the Buffet Indicator as it is sometimes referred to, due to the fact that it was popularized by the famous investor Warren Buffet, compares the market capitalization of all publicly-traded stocks on a single market with the country's GDP. The average value for Poland during that period was 25. In 2020, United States and China would remain the largest economy in nominal and PPP, respectively. This can be seen in Figure 10(b), which shows the market capitalization divided by the GDP. The table below lists the total market cap to GNI (GDP) ratios of the largest economies in the world. The combined market capitalization of BUA Cement, Airtel Africa, Dangote Cement, MTN Nigeria, and Nestle Nigeria stood at N8. "This ratio is insignificant in comparison with. 5% in 2016 and 2. 1 trillion $ 1 7. 2 trillion × 1 0 0 = 1 5 1. European Union's Market Capitalization accounted for 54. In terms of valuations a very simple metric is market cap to GDP is still not back to February 2016 levels. The top 5 countries (others are China, Japan, Hong Kong, and France) account for 71. That is basically a vague sounding smartspeak for checking out the market capitalization of listed companies (as a % of GDP). market size resembles a hockey stick. The magazine expects India to rise to fifth place in 2019 from seventh, and France to remain at sixth. GDP expanded 6. Say, the US GDP is approximately $17 trillion and the market cap is $22 trillion. It's now one of the most affected countries. 24% GDP growth boosts market capitalization by 0. The valuation of the world's financial assets is estimated at 378% of global GDP, with 89. stock market capitalization to its highest level to GDP in this post. 17 USD, the standard deviation is 2853. 8 times of the GDP level of Rs 41,50,000 crore (Rs. Say, the US GDP is approximately $17 trillion and the market cap is. com INDEX CHARACTERISTICS MSCI ACWI GDP Weighted MSCI ACWI Number of Constituents 3,040 3,040 Weight (%) Largest 3. This trend is common across countries and mirrors increases in other financial and price indicators, but happens at a much faster pace. It has become popular in recent years, thanks to Warren Buffett. Hong Kong's nominal GDP is $372 billion which is about the same as those of. stock market is at its most extreme valuation levels in history measured by our and Warren Buffet's favorite metric — total stock market capitalization-to-GDP. Current Activity Indicator (CAI) 06/06/2020 Off Saving – Household Spending as % of Disposable Income and 10-Year Treasury Yield. History has shown, that when the Market Cap / GDP shows a very high valuation, the stock market in general was quite highly valued: For example in 2000 the Buffet Indicator reached a TMC/GDP value of 148. The market-cap-to-GDP ratio is currently at its lowest level since the global financial crisis of 2008-2009. In 2010 the European Union faced a crisis when Greece threatened to default, potentially causing a domino effect, of highly leveraged nations like Spain and Italy doing the same, which. What does GDP mean for the stock market? Intuitively, faster economic growth in a country suggests faster sales growth for companies, potentially lifting the stock market. Most economists agree that GDP, the most widely used measure of a country's success and growth, is a poor indicator of the overall wellbeing of a nation. 75 trillion. 7 % \begin{aligned} &\text{Market Cap to GDP} = \frac{ \$26. However, it should also be noted that the current market cap-to-GDP ratio is still lower than the 10-year average of 78%. Market Cap to GDP = (Market Capitalization of the Country / GDP of the Country)*100 For Example: The total market capitalisation for all stocks listed on the BSE is Rs135. 00 Average 0. But wait a minute shouldn’t GDP and stock market capitalization be the same and what is capitalization anyway?. This country has been working to overcome the 2012 to 2013 financial crisis. European Union's Market Capitalization: % Nominal GDP is updated yearly, available from Dec 1975 to Dec 2018. This data spanned two decades (1990-2010). Both Exxon Mobil and Chevron took in greater revenues than the entire GDP of Romania. COPPER PRICES, IMF GDP PROJECTION, CHINESE ECONOMIC RECOVERY – TALKING POINTS: Copper prices remain near multi-year lows amid COVID-19 pandemic; Secular downtrend in Chinese economic growth may reverse in 2021. 21 percent in 1995 and a maximum of 49. The Saudi Stock Exchange's (Tadawul) market capitalization relative to the country's real gross domestic product (GDP) dropped to 55 percent during the first quarter of 2016, its lowest level in 11 years, a new study by Argaam showed. As we can see below, re-slicing the FTSE All-World market-cap weighted index to reflect the relative size of each country's economy results in a vastly different looking pie. The success and the applicability of the market-cap-to-GDP ratio is higher when the market-cap reflects a much larger share of the economic activity in the country, said the Motilal Oswal report. (Photo: Financial Chronicle). Market Cap to GDP is a long-term valuation indicator that has become popular in recent years, thanks to Warren Buffett. capitalization over GDP and GDP that explains economic growth over two different decades (1990s and 2000s). Between 2008 and 2015, the ratio "digital economy market capitalization divided by the GDP" grew in all countries. Market capitalization of listed domestic companies (% of GDP) Brazil experienced a year-on-year average growth rate of 9. 97 % for the time period 2000 to 2018. Market cap-to-GDP ratio. It presents the most current and accurate global development data available, and includes national, regional and global estimates. is more than that of the country s GDP. (SPOT’s market cap topped $35bn once again, a month later, on August 27, 2018. market to 20 other countries you may be interested in investing. The market capitalisation to GDP ratio of BSE-listed firms is now above 100 percent, based on the four quarter trailing nominal GDP of the economy. Plecher, Jun 3, 2020 In 2019, the estimated total GDP of all ASEAN states amounted to approximately 9. (Photo: Financial Chronicle). 2 % 2019: 94. Secondly, India's share of world market cap at 2. Growth at Reasonable Price. From 2003 until 2016, the country which has one of the largest stock markets in the emerging market universe had seen a peak in its market capitalization-to-GDP ratio at 152. com INDEX CHARACTERISTICS MSCI ACWI GDP Weighted MSCI ACWI Number of Constituents 3,040 3,040 Weight (%) Largest 3. Country [49 / 54] Subject [12 / 12]. The success of market capitalization to GDP ratio is higher when the market cap reflects a much larger share of economic activity. As we can see below, re-slicing the FTSE All-World market-cap weighted index to reflect the relative size of each country's economy results in a vastly different looking pie. 2 hours ago. GDP weighted indices reflect the country factor by weighting the countries by their GDP. Bangladesh has the highest year-on-year average growth rate at 160. The success of market capitalization to GDP ratio is higher when the market cap reflects a much larger share of economic activity. Though its position has been changing in recent years, it attained the 1st rank by market capitalisation in 2015 but it came to 2nd position 2016. This ratio measures a country’s government debt compared to its gross domestic product (GDP) – or the value of all goods and services produced by the country. The GDP index concept provides an alternative, thus complimentary, view of markets. Even after the financial crisis, Bank of America, JP Morgan Chase, Citigroup, and Wells Fargo remain in the top 20 of the world's largest corporations, each with revenues higher than Iraq's GDP. PPP takes into account the relative cost of living, rather than using only exchange rates, therefore providing a more accurate picture of the real differences in income. The total listed market cap touched Rs 33 lakh crore on Friday, eclipsing the GDP figure of around Rs 32 lakh crore during FY06. stock market capitalization, trade openness and real GDP in Thailand during 1993 and 2013. The surge of 23 percentage points is due to exuberance in the equity market despite economic growth slowing. April 06, 2020 10:02 AM IST. What was the average percentage of business by U. The ratio, which is also known as Warren Buffett indicator, compares the aggregate value of all stocks to the value of the country's total output. When you get to a certain point in countable numbers meaning can become obscured by the magnitude. Government spending has amounted to 16. 02% of the world's market capitalization. "Poor countries such as Bangladesh, Nigeria, and Vietnam. On the other hand, Gross National Income helps to show the economic strength of the citizens of a country. It is defined as the total value of goods and services produced within a country’s borders in a specific time period — monthly, quarterly or annually. 6 (58% less). corporations done outside the country from 1924 to 1991?. Financial services and products help facilitate and finance the export of U. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. After a trough of 84. GK, General Studies, Optional notes for UPSC, IAS, Banking, Civil Services. 05 provides for the costs and profits of German transporters, wholesalers, retailers, and advertisers (some of which will revert to the state through various taxes); H&M makes sixty cents profit per shirt; the. According to a regression of GDP on market capitalization in 2010, virtually all developed countries had _____ per capita GDP than (as) predicted by the regression. If it is higher than 100%, it indicates the stock market valuations may be expensive. Reserves are located in the eastern and northwestern part of the country and provide jobs to approximately. Exhibit 1: Five top over-and underweighted countries in the MSCI ACWI GDP Weighted Index Country Weight Difference (GDP - Market Cap) Top Overweights China 5. As a result, the most recent GDP complete figure for Africa that we have is 2014, when 53 countries (excluding Eritrea and Western Sahara) had a combined output of $2. 37 billion U. Market capitalization is equal to the share price multiplied by the number of shares outstanding. The market cap to GDP ratio, or the Buffet Indicator as it is sometimes referred to, due to the fact that it was popularized by the famous investor Warren Buffet, compares the market capitalization of all publicly-traded stocks on a single market with the country’s GDP. 18, 2013, the firm's market capitalization was around $332 billion. Stock prices had seen a significant meltdown after that amid the global financial crisis. Definition of gross domestic product (GDP): The value of a country's overall output of goods and services (typically during one fiscal year) at market prices. Countries with Most Private Loans Relative to GDP. 74 trillion. When we use the market-cap-GDP ratio to do cross-country comparisons, we come to strange conclusions. This measure can be thought of as an economy wide price to sales ratio. I believe the chart above uses the GDP calculated based on purchasing power parity as opposed to nominal GDP in US$. Although GNP is different from GDP (gross domestic product), the two numbers have always been within 1% of each other. World's GDP is $80,934,771,028,340 (nominal, 2017). He created the following chart, which plots the Buffett Indicator from 1950 to 2014. When we use the market-cap-GDP ratio to do cross-country comparisons, we come to strange conclusions. But the market caps of tech giants Amazon(AMZN), Microsoft(MSFT) and Apple(AAPL) combined now exceed UK's GDP. Here are some interesting facts to put things in perspective: * TCS' market cap is more than the GDP (Gross Domestic Product) of more than 120 countries. For example; If inflation rate is 2. An investor’s belief that countries with high debt/GDP ratios are riskier than the median investor realizes would call for a strategy equivalent to moving from the market-cap benchmark in the direction of the GDP-weighted benchmark. The GDP figure in the first quarter of 2020 was €637,603 $578,220 million, leaving United Kingdom placed 5th in the ranking of quarterly GDP of the 50 countries that we publish. Stock market capitalization to GDP (%) in Croatia was reported at 39. Countries are sorted by nominal GDP estimates from financial and statistical institutions, which are calculated at market or government official exchange rates. The IMF publishes a range of time series data on IMF lending, exchange rates and other economic and financial indicators. 89% increase from 2018. 31 billion U. While the economic crises brought upon the world by the COVID-19 epidemy continues to linger, the world's economy is gradually being dragged into recession, leaving most countries in a dire. The infographic shows 40 of the world’s largest economies, according to World Bank data from the year 2015, the latest available. Say, the US GDP is approximately $17 trillion and the market cap is. Country/Region Last Previous Frequency Range Australia (%) yearly 1985 - 2019: 106. Market Cap to GDP is a long-term valuation indicator that has become popular in recent years, thanks to Warren Buffett. The nation is renowned for its textile, shoe, cement, lumber, iron ore, and tin sectors. Real GDP would adjust upward (or downward) after filtering out inflation. Gross domestic product, or simply GDP, is an economic term used to describe the total amount of goods and services produced by a country at a given period. [Note: Even though Global Development Finance (GDF) is no longer listed in the WDI database name, all. The US economy is much more services-oriented than the rest of the world. The figures presented here do not take into account differences in the cost of living in different. Interpretation. Such variations make the comparison across market cap and GDP very difficult. 05 trillion. Infosys market cap jumps by $4 billion, more than Fiji GDP. 0 percent in Dec 1985. Market cap to GDP is a quick and dirty way to compare fundamental valuations across countries, assuming fundamentals matters in your trade horizon (so we are talking long term here). By using t…. The market cap to GDP ratio, or the Buffet Indicator as it is sometimes referred to, due to the fact that it was popularized by the famous investor Warren Buffet, compares the market capitalization of all publicly-traded stocks on a single market with the country’s GDP. The four valuation indicators we track in our monthly valuation overview offer a long-term perspective of well over a century. Wed, Jun 3rd 2020. How Apple's market cap compares with countries' GDP. International investors can find the same data for all countries using tools provided by the World Bank and other international organizations. The average value for Poland during that period was 25. This chart puts into perspective the GDP of various countries with the market capitalization of some U. Ideally, we would like to have the data points for Global Market Cap and Global GDP for the same time period, but GDP is lagged by 1 quarter, as GDP takes longer to calculate and compile than do. The surge of 23 percentage points is due to exuberance in the equity market despite economic growth slowing. 5a: African FDI outflows mainly go from resource-rich countries to OECD nations (% of GDP). The numbers were somewhat different in 1929 when the market cap already was in decline and amounted to 81% of GDP, but fell precipitously to 25% of a ruinous GDP in 1933. The GDP number used is one that is reported on a quarterly basis. I assume this question is related to Apple Corp hitting a $1 trillion market cap and why THAT is significant. It is the ratio of a country’s stock market capitalization (market cap) compared to that country’s overall GDP. For example, for the domestic market, if the total market capitalization for all stocks listed on the BSE is ₹ 135. Breakdown of Gross Domestic Product per capita in its components. India's current market cap of all listed stocks is around $2. Market capitalization of listed domestic companies (% of GDP) - Canada from The World Bank: Data Learn how the World Bank Group is helping countries with COVID-19 (coronavirus). But banking, financial and information technology companies account for close to 24 per cent of BSE’s market cap. McKinsey calculated those figures. 9 trillion in 2018, per the latest data from the World Bank, and Apple's market cap is 1. 1% lower than the prior year. GDP is an accurate indicator of the size of an economy and the GDP growth rate is. As of 2018, market capitalization (% of GDP) in Hong Kong was 1,053 %. Macro View Series: Cross Country Market Cap To GDP Out of sheer lack of actions in the market (which I hope will change with the NFP and ECB tomorrow, the ADP came in great today), we take a look at cross country relative equity valuation. Reality check for Hezbollah supporters: All these countries combined GDP is less than HALF the market cap of Apple Inc. The ratio, which is used to determine whether the overall market is undervalued or. NI is the sum of the following components: Labor Income (W) Rental Income (R). Reserves are located in the eastern and northwestern part of the country and provide jobs to approximately. Warren Buffet once said that the percentage of total market cap to US GNP is the "best single measure" for stock market valuation. United Kingdom Government Debt and Stock Market Capitalization to GDP, 1688 to 2018. 89% increase from 2018. The description is composed by our digital data assistant. NI is the sum of the following components: Labor Income (W) Rental Income (R). The new gauge takes into account such factors as income equality, sustainability and education. 23% of GDP, the standard deviation of GDP is 33. "This ratio is insignificant in comparison with. Emerging Markets Account for 80% of Global GDP Growth But Only 10% of World Equity Market Cap; Commodities Formed Half of MSCI Emerging Markets Index in 2008, Now Down to 15% ; Higher market cap, but lower portfolio exposure. 1 trillion (USD), or a 6. As of 2018, market capitalization (% of GDP) in Hong Kong was 1,053 %. 7 trillion in 29 other reporting jurisdictions at end-2019. US Total Market Capitalization is at 146. According to the Bank for International Settlements, China’s debt to GDP ratio reached 257 per cent in 2017, higher than the United States’ 152 per cent, and more than most emerging economies. This statistic illustrates bond market capitalization as a share of gross domestic product (GDP) in selected European countries as of 2015, by country. The stock market capitalization-to-GDP ratio is a ratio that measures the overall value of all publicly traded stock in a market in comparison to the country's gross domestic product (GDP). Just for a random selection of countries that I picked. 6% Russia 2. Based on historical ratio of total market cap over GDP (currently at 144. This is a very healthy sign for the economy. From the graph I estimate that the ratio from 1924 to 1992 was about 50% (area under the curve method). 10 Companies That Are Bigger Economic Powers Than Most Countries. This study explores the impacts of country risks on the relationship between energy consumption and financial development for 79 countries. cover the MSCI Emerging Markets (MSCI EM) and MSCI All Country World (MSCI ACWI) Indices. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used. Netherlands gdp for 2018 was $980. Some of the big tech companies are now bigger than some countries in terms of market capitalization. Global GDP was $85. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. 5a: African FDI outflows mainly go from resource-rich countries to OECD nations (% of GDP). Stock market capitalization, billion USD, 2018 - Country rankings: The average for 2018 based on 65 countries was 1040. The success of market capitalization to GDP ratio is higher when the market cap reflects a much larger share of economic activity. The table below lists the total market cap to GNI (GDP) ratios of the largest economies in the world. History has shown, that when the Market Cap / GDP shows a very high valuation, the stock market in general was quite highly valued: For example in 2000 the Buffet Indicator reached a TMC/GDP value of 148. com bubble peak, almost 15 percent on a proportional. It is defined as the total value of goods and services produced within a country’s borders in a specific time period — monthly, quarterly or annually. GDP is said to be the measure of a country’s overall economic output. The current bullishness in the equity market has taken market cap higher, but the GDP is still lower (new series shows a small fall in nominal GDP). Significance · The result of this calculation is the percentage of GDP that represents stock market value. The next section describes the materials and methods that are employed in. 31 in the USA. They do not under any circumstance form the basis of a trading strategy but just as a cross check to see if you are doing the right thing by holding on to a large invested position or cash position. International investors can find the same data for all countries using tools provided by the World Bank and other international organizations. 23, the market capitalisation of BSE listed firms. Market cap-to-GDP ratio has fallen swiftly from 79% as on FY19 to 58% (FY20E GDP) - much below long-term average of 75% and closer to levels last seen during FY09. The GDP dollar estimates presented here are calculated at market or government official exchange rates. 2 hours ago. 7% witnessed in 2008, its ratio has remained over the 100% mark for all succeeding years. 8% of the national GDP. 0 percent in Dec 1985. The ratio of the two works out to 1. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. Top 30 Countries / Economies by Market Capitalization of Listed Companies (% of GDP) - Duration: 4:34. The green line denotes the most optimistic analyst forecast. FocusEconomics panelists see GDP contracting 2. For example, the GDP of UK is about $2. The combined market cap of listed companies in China is now equivalent to 80 per cent of the country's latest annual GDP (on current prices) against India's 76 per cent. It is the ratio of a country’s stock market capitalization (market cap) compared to that country’s overall GDP. The indicator was over 100% for years, which could be the reason why. What was the average capitalization to GDP ratio prior to the globalization era, say before 1992. The market-cap-to-GDP ratio is currently at its lowest level since the global financial crisis of 2008-2009. That explains, why some countries like the US, UK, and Singapore have a ratio much above 100. Between 2008 and 2015, the ratio “digital economy market capitalization divided by the GDP” grew in all countries. By using t…. The Market Cap to GDP ratio (also known as the Buffett Indicator) is a measure of the total value of all publicly traded stock in a country, divided by that country’s Gross Domestic Product (GDP). GDP and 23rd largest by purchasing power parity (PPP) #146 in worldwide Ease of Doing Business ranking • Nigeria is home to 3 billionaires as of 2018 -this marks Nigeria as the 49th largest country with billionaire population • Nigeria’s major stock exchange, the Nigerian Stock Exchange, had a market capitalization of $38. 29%, the minimum of GDP is 33. A value above 100% indicates that the market is overvalued while a number close to 50% indicates that it is undervalued. Market cap-to-GDP ratio has fallen swiftly from 79% as on FY19 to 58% (FY20E GDP) - much below long-term average of 75% and closer to levels last seen during FY09. 09 Smallest 0. At the top of the list is Cyprus, where domestic credit equates to 250. The nominal GDP of an area is determined using up-to-date market prices and shifts according to inflation. Market cap to GDP is a quick and dirty way to compare fundamental valuations across countries, assuming fundamentals matters in your trade horizon (so we are talking long term here). During FY 2002-03,the market cap-to-GDP ratio in India was as low as 23. 74 trillion. 20 percent in 2018. com bubble peak, almost 15 percent on a proportional. stock market is at its most extreme valuation levels in history measured by our and Warren Buffet's favorite metric — total stock market capitalization-to-GDP. Top 10 Company Market Cap Ranking History (1998-2018. Read more about What does market cap-to-GDP ratio tell about market valuation? on Business Standard. The country's market cap to GDP ratio in 2019 was 9 percent of nominal GDP, compared to 9. Country allocation in a GDP-weighted index therefore might look significantly different to that of an index that utilizes market cap weightings. 2 % 2018: yearly. Market Cap to GDP is a long-term valuation indicator that has become popular in recent years, thanks to Warren Buffett. 24% GDP growth boosts market capitalization by 0. The global market cap for stocks as a percent of world GDP, however, is lower than it was in 2007. When you get to a certain point in countable numbers meaning can become obscured by the magnitude. The ratio, which is also known as Warren Buffett indicator, compares the aggregate value of all stocks to the value of the country's total output.