> 30% increase in one year
reply30% above the average. Households bought $1.6 trillion in Q3 of 2025, for example. (Foreigners bought a further $650 and $700 billion in Q3 and Q4, respectively.)
American capital markets are ridiculously deep.
> capital markets are ridiculously deep.
replyAmerican market valuation is more than twice the entire US GDP. So ridiculous is a good description of what's going on.
> American market valuation is more than twice the entire US GDP
replyStock versus flow.
Everyone knows one is stock and the other is flow. It doesn't mean that we can't measuring the ratio between them. Actually, measuring ratios between "stock" and "flow" values is one of the favorite things analysts and economists do! (e.g., rent vs house price, P/E, fixed cost vs marginal cost...)
replyThere is even a name for marketcap/GDP, Buffett Indicator. And historically the current value is very high.