Stock Market Capitalization to GDP for United States
DDDM01USA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
194.89
Year-over-Year Change
148.35%
Date Range
1/1/1975 - 1/1/2020
Summary
The stock market capitalization to GDP ratio measures the total value of publicly traded stocks relative to the size of the U.S. economy. It provides insights into market valuation and investor sentiment.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This economic indicator tracks the aggregate market value of all publicly traded companies in the United States divided by the country's GDP. It is used to assess the overall size and health of the U.S. stock market in relation to the broader economy.
Methodology
The data is calculated by the World Bank using market capitalization and GDP figures reported by national authorities.
Historical Context
Policymakers and analysts monitor this ratio to gauge financial stability and identify potential market imbalances.
Key Facts
- The U.S. stock market capitalization to GDP ratio reached a record high of 197% in 2021.
- This ratio has fluctuated between 50-200% over the past two decades.
- High ratios may signal overvaluation, while low ratios can indicate undervaluation.
FAQs
Q: What does this economic trend measure?
A: The stock market capitalization to GDP ratio measures the total value of publicly traded stocks relative to the size of the U.S. economy.
Q: Why is this trend relevant for users or analysts?
A: This indicator provides insights into market valuation and investor sentiment, which is useful for assessing financial stability and identifying potential market imbalances.
Q: How is this data collected or calculated?
A: The data is calculated by the World Bank using market capitalization and GDP figures reported by national authorities.
Q: How is this trend used in economic policy?
A: Policymakers and analysts monitor this ratio to gauge financial stability and identify potential market imbalances.
Q: Are there update delays or limitations?
A: The data is updated annually by the World Bank, so there may be a delay in reflecting the most recent market conditions.
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Citation
U.S. Federal Reserve, Stock Market Capitalization to GDP for United States (DDDM01USA156NWDB), retrieved from FRED.