The sense and nonsense of market cap to gross domestic product ratio4 min read . Updated: 23 Feb 2015, 12:53 PM IST
Punditry of all kind has jumped on to the bandwagon and this ratio has become one of the most used and abused in the financial markets
Still, it is probably the best single measure of where valuations stand at any given moment." So said Warren Buffett in December of 2001, in reference to the market capitalization to gross national product ratio (he used GNP in 2001 and GDP, or gross domestic product, while giving a talk earlier in 1999).
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