http://pragcap.com/the-relationship-between-equity-prices-and-the-real-economy Sun, 12 Feb 2012 13:32:07 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://pragcap.com/the-relationship-between-equity-prices-and-the-real-economy/comment-page-1#comment-12537 Grouch Sat, 06 Mar 2010 08:28:15 +0000 http://pragcap.com/?p=17895#comment-12537 No, the data you mention is not available for timeperiods long enough to put recent events into context. No, the data you mention is not available for timeperiods long enough to put recent events into context.

]]> http://pragcap.com/the-relationship-between-equity-prices-and-the-real-economy/comment-page-1#comment-12467 Clueless Fri, 05 Mar 2010 11:48:08 +0000 http://pragcap.com/?p=17895#comment-12467 Would not read too much into these charts - GDP represents a crude yardstick for the income from publicly listed companies, since not only does it include the non-listed private sector but also the public sector, their direct expenditure and investments. Much better to stick to a "narrower universe" and measure the market cap in relation to earnings, sales, cash-flow, EV, etc. All this data is readily available and replacing it with GDP just adds too much noise. Would not read too much into these charts – GDP represents a crude yardstick for the income from publicly listed companies, since not only does it include the non-listed private sector but also the public sector, their direct expenditure and investments. Much better to stick to a “narrower universe” and measure the market cap in relation to earnings, sales, cash-flow, EV, etc. All this data is readily available and replacing it with GDP just adds too much noise.

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