| Date | U.S. Equity Market Value (USD, Million) | Top 500 U.S. Companies Market Value (USD, Million) |
|---|---|---|
| 12/31/2019 | 33,905,976.7 | 28,125,589.1 |
| 12/31/2018 | 30,449,359.4 | 22,065,655.2 |
| 12/31/2017 | 31,774,585.4 | 23,938,148.8 |
| 12/31/2016 | 27,362,567.7 | 20,222,191.7 |
Is the stock market bad for US?
Yet this is not merely a Wall Street problem. Main Street would be threatened by a more serious market downturn, and that would spell political trouble for Biden, whose approval ratings have been hurt by very high inflation. "The economy and markets are intertwined. A sharp drop in the stock market will impact economic activity.
What is the total valuation of the stock market?
Vanguard Total Stock Market ETF ( VTI) - 315,650 shares, 34.87% of the total portfolio. Shares added by 23.47% Vanguard S&P 500 ETF ( VOO) - 133,667 shares, 26.70% of the total portfolio.
Is the U.S. stock market overvalued?
The US stock market is not overvalued and in fact is actually inexpensive. Historical price to earnings multiples are misleading because they were based on interest rates and earnings growth rates at that time. Price to sales and price to book multiples ignore operating margins and physical asset intensity.
How do you find current stock price?
Current Stock Price. To get a stock price, use the GOOGLEFINANCE formula as follows: =GOOGLEFINANCE(stock symbol,"price") You can type a stock symbol in the parentheses, or give the formula a cell with the stock symbol to pull the price. In the screenshot below, you'll see how I use the formula and pull it down to get the stock price for each ...
Core Valuation Models
We currently track five different models to evaluate whether the US stock market is accurately priced, relative to long-term historical patterns and fundamental indicators. Each model is illustrated below, with much more detail available by clicking into each. Models are updated weekly, or as data becomes available.
Yield Curve Model: Fairly Valued
If the spread between the 10-year and 3-month Treasury yield is negative (when 3mo yield is higher than 10y), it is a bearish signal that is almost always followed by economic recession.
Buffett Indicator Model: Overvalued
The ratio of the total value of the US stock market vs current GDP. Originally a favorite valuation indicator of Warren Buffett.
S&P500 Mean Reversion Model: Overvalued
This model simply assumes that over time the S&P500 will tend to revert back to its own long term trend line.
Interest Rate Model: Fairly Valued
For several reasons, low interest rates tend to push stock prices higher. This model considers current US stock market prices relative to US Treasury interest rates.
Margin Debt Model: Strongly Overvalued
The model looks at the level of margin debt that investors use to finance further stock purchases.
Posts
Shorter form blog-style posts on various stock/economy related topics, but not limited to market valuation. These are generally not updated after they are posted.
What is the Nasdaq index?
The Nasdaq Composite Index is a market-capitalization-weighted index of all the stocks traded on the Nasdaq stock exchange. 5 This index includes some companies that are not based in the United States.
What is the Dow Jones Industrial Average?
The Dow Jones Industrial Average (DJIA) is one of the oldest, most well-known, and most frequently used indexes in the world. It includes the stocks of 30 of the largest and most influential companies in the United States. 4
What are the top two large cap indexes?
The S&P 500 and Dow Jones Industrial Average are two of the top large-cap indexes, but others include the S&P 100, the Dow Jones U.S. Large-Cap Total Stock Market Index, the MSCI USA Large-Cap Index, and the Russell 1000. Notable mid-cap indexes include the S&P Mid-Cap 400, the Russell Midcap, and the Wilshire US Mid-Cap Index.
Is the S&P 500 market weighted?
Indexes are usually market-weighted or price-weighted. The S&P 500 Index is a market-weighted index (also referred to as capitalization-weighted). Therefore, every stock in the index is represented in proportion to its total market capitalization. In other words, if the total market value of all 500 companies in the S&P 500 drops by 10%, ...
What are some things that have value?
There is a limited amount of cash, but there are many different things that have value to people -- cars, boats, houses, buildings, gold, land, books, roads, stocks and so on. These things all have value. In order to transfer ownership, we use cash to represent the value. Cash is the universal representation of value.
What is the universal representation of value?
In order to transfer ownership, we use cash to represent the value. Cash is the universal representation of value. If we didn't have cash, we would have to exchange objects of equal value whenever we wanted to buy something. That's called bartering, and it's generally an inconvenient means of purchase.
How many companies were listed in 1999?
On the New York Stock Exchange (NYSE), as of October 1999 there were 3,066 companies listed. One of them was IBM. A site like this one would tell you that IBM had 1,809,090,000 outstanding shares on October 21, 1999, and this page would tell you that the stock closed at $91 on October 21, 1999. That means that IBM's total capitalization was:
What was the US GDP in 2012?
The United States Gross Domestic Product for 2012 was $15.68 trillion. Judging a country only by its GDP is like buying a car based on its color or a stock only based on its EPA. GDP is like a country’s income statement, but where’s the balance sheet? Only the balance sheet tells us about assets, liabilities, and the actual worth of the country.
Does the Federal Reserve publish balance sheets?
But for some reason the Federal Reserve publishes only balance sheets for some sectors of the economy and makes us dig for the rest. If you are willing to dig though, you can find the approximate value of all U.S. assets.
