Some think stocks are not expensive after the recent fall.
Today the Market Cap to GDP ratio is around 132%, still near its highest levels ever.
It would need to fall to 106% just to get back to where it was at the peak of the bubble in 2007.
Further, this ratio looks to become even more overvalued as the government releases the GDP numbers in the weeks ahead. Analysts expect a historical crash in GDP after the unprecedented shut down of the global economy, which could quickly thrust this ratio to all-time highs.
And then… it could hit its historical mean of 80.
Jeff, Guest Writer
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