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Opinion

US Stock Market Cap to GDP Ratio Reaches 190%, Eclipsing Dot-Com Bubble High

The booming stock market is driven by perception of the Federal Reserve’s commitment to high prices and growing individual trading, but how sustainable is it?

By Nathaniel Whittemore
AccessTimeIconAug 31, 2020 at 7:00 p.m. UTC
Updated Sep 14, 2021 at 9:50 a.m. UTC
AccessTimeIconAug 31, 2020 at 7:00 p.m. UTCUpdated Sep 14, 2021 at 9:50 a.m. UTC
Volatile stock market

(Nuthawut Somsuk/Getty Images)

AccessTimeIconAug 31, 2020 at 7:00 p.m. UTCUpdated Sep 14, 2021 at 9:50 a.m. UTC

The booming stock market is driven by perception of the Federal Reserve’s commitment to high prices and growing individual trading, but how sustainable is it?

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This episode is sponsored by Crypto.com, Bitstamp and Nexo.io.

Today’s episode of The Breakdown looks at the stories the stock market is trying to tell, including:

  • New all-time high in total market capitalization to GDP ratio (higher than dot-com bubble) 
  • “No precedent for how high” valuations can go 
  • Fed denies asset bubble; intimates it wouldn’t care about asset bubbles if full unemployment comes with them
  • Bezos at $200,000,000,000
  • Percentage of stocks traded by individuals reaches all time high of 20%
  • Robinhood leads in FTX complaints
  • Buffett’s Japan trading firm bet

See also: Winter Is Coming: Examining the Economy’s Eight-Body Problem

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