Originally Posted by
alokdhir
"The stock market capitalization ratio (also known as the stock market to GDP ratio) is a financial metric that compares the total value of a country's stock market to its gross domestic product (GDP). This ratio is used to assess the relative size and importance of a country's stock market compared to its overall economy.
A high stock market capitalization ratio suggests that the stock market is a significant driver of a country's economic growth, and that investors are optimistic about the future prospects of the country's businesses. However, a very high ratio can also indicate a potential bubble in the stock market, where stock prices may be overvalued relative to the country's economic fundamentals.
On the other hand, a low stock market capitalization ratio may indicate a relatively small or underdeveloped stock market, or that the economy is heavily dominated by non-listed industries or sectors. However, a low ratio can also suggest that the stock market is undervalued relative to the country's economic fundamentals, which may present an attractive investment opportunity for investors."
ChatGPt answer to ratios ....US at 201% vs NZ 55% vs Australia 157% ....draw your own conclusions which market has further to grow !!!