Buffet indicator, relative to history, highlights small EM-FM

Market Cap to GDP is not a useful measure, on absolute basis, across different regions with varying levels of equitisation (representation of the local economy in the equity market). It is also a measure skewed by varying representation of the Technology sector. However, this metric is much more meaningful, as a cross-regional one, when measured relative to its own history.

Chart: Hasnain Malik Source: Bloomberg (30 January 2022), MSCI, Tellimer Research Get the data