Equities Have Now Become "Reasonably" Priced in Relation to GDP

By on February 5, 2009

Carol J. Loomis and Doris Burke of Fortune report that stocks as a percentage of GDP have reached 75% versus the insane 190% of March 2000. According to Warren Buffett, equities are now reasonably priced, but closer examination of the chart shows that this ratio has been lower than 50% for extended periods in the past.

Source:

http://money.cnn.com/2009/02/04/magazines/fortune/buffett_metric.fortune/index.htm

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