Sovereign Man Notes From The Field By Simon Black
March 16, 2016 Singapore
[Editor's note: Sovereign Man's Chief Investment Strategist, Tim Staermose, is filling in for Simon today.]
One of the wealthiest countries in the world-- the place where there are more millionaires per capita than anywhere else on the planet-- now has a dirt cheap stock market.
It's Singapore.
And right now, the total market value of all stocks traded in Singapore amounts to about 107% of the country's GDP.
The historical range for this number over the past few decades has gone as high as 418% during the bubble years in the 1990s, and as low as 92% at the height of the 2008 financial crisis.
This 'stock market to GDP' ratio is a hugely important valuation.
Warren Buffett considers it "probably the best single measure of where valuations stand at any given moment."
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