Essentially, it measures the total stock market capitalization of a country relative to its GDP and is expressed as a percentage. This provides an indication of whether a country's stock market is overvalued or undervalued in relation to the size of its economy. The 10-year average of this ratio is around 87%, suggesting a potential correction or bear market on the horizon. According to this measure, it implies that the market is running ahead while the GDP needs to catch upputting the cart before the horse, so to speak.
This story is from the January 25, 2024 edition of Mint Mumbai.
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This story is from the January 25, 2024 edition of Mint Mumbai.
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