SPXL - The Buffett Indicator Revisited: Market Cap-To-GDP And Valuations

• For comparisons over different time frames to have merit, the share of profits of listed companies should be broadly consistent with the profits of unlisted companies.
• The degree to which stock markets penetrate into economic activities varies from one nation to the next. This divergence holds true regardless of whether countries are developed or developing, capitalist or (erstwhile) socialist.
• If a particular capital market attracts listings from companies from around the world, its Buffett Indicator can be quite disproportionate.

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