Yet another example of our unusual economic times is presented by the chart below. I have recently published a series of examples that compares the current market environment to that of the internet bubble. Today, the comparison of the non-financial market cap of the S&P 500 harkens back to 1929.
Our current situation does not necessarily mean that we will shortly endure a market crash and 1930s economy. However, there is no denying the current fragile state of the global economy and high level of investor complacency produced by extreme optimism.
These factors, plus an abundance of potential catalysts for market volatility, will likely produce an investment landscape in the years to come that is rich in both significant risks and opportunities.
Caution and attention are warranted.
S&P 500 Non-Financial Market Cap/GDP Reaches 1929 High
Yet another example of our unusual economic times is presented in the following chart.
If you found this post of interest, you’ll find the Global Investment Letter of value. To view free sample issues and to receive our weekly investment comment please click here.
Disclaimer: This material is sourced from the Globalinvestmentletter.com website and is subject to the terms of use and privacy policy of that site. The comments are for informational purposes only and represent the opinions of the writer, which can change at any time as additional information becomes available. They do not constitute an offer to buy or sell a security at any price. The information contained is believed to be reliable at time of writing but cannot be guaranteed. No liability is accepted for any loss or damage arising from the use of the material presented.
All rights reserved. This material is strictly for viewing by specified recipients and may not be reproduced, distributed or forwarded in any manner without the permission of the publisher.
Comments
Log in or sign up to join the conversation.