Global Total Market cap / GDP Ratio June 2020

I will have a look at the current data comparing the US and Swedish markets with some of the emerging markets (China, India, Russia). Total Market cap / GDP Ratio which I believe is also known as the Buffet indicator. Which are undervalued and which are overvalued?

I’m mainly invested in the US, Canadian, Swedish and Finnish markets. Through my pension and different funds I’m able to invest in other markets. Some companies have more exposure to some markets.

CountryGDP ($Trillion)Total Market/GDP Ratio (%)Historical Min. (%)Historical Max. (%)Years of DataCountry ETF
USA21.53147.33315350SPY
China13.4835.7232.9566230MCHI
Japan5.1152.255636136EWJ
Germany3.943.671357.8430EWG
India2.7755.694015823INDA
Canada1.71112.067819030EWC
Russia1.5919.8714.35115.3423ERUS
Sweden0.55147.7527.53192.0930EWD
Hong Kong0.38945.21571.842363.3130EWH
Singapore0.3685.8878.7141833EWS
Source (updated daily): https://www.gurufocus.com/global-market-valuation.php

Country% from Historical Min.% from Historical Max.Average yearly return to Historical max if reached 10 years from today
USA346%-3,73%0%
China8%-94,60%38%
Japan172%-57,83%10%
Germany236%-24,50%3%
India39%-64,75%12%
Canada44%-41,02%6%
Russia38%-82,77%22%
Sweden437%-23,08%3%
Hong Kong65%-60,00%11%
Singapore9%-79,45%19%
Based on the numbers in the previous table
https://www.gurufocus.com/global-market-valuation.php
  • Could China, Russia, Singapore be lower-risk investments?
  • Are the US markets overvalued?

Probably. Whether these are the bottoms or tops I can’t say. It’s better to be cautious. I’m going to look over my stoplosses and perhaps look for more exposure to China.

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