>>20874377>>20874388>Makes no sense to compare the twowhy not? one value doesn't have to directly factor into another, or be the same units, to be compared
ratios of different systems can help reveal certain trends, especially from the macro perspective where thousands of contributing factors all mesh together
it's just one indicator of many to be factored into decisions
going by history, the past times stocks were this inflated relative to GDP were:
1968 - 33% drop that took 12 years to recover
2000 - 45% drop than took 13 years to recover
2022 - 22% drop that took 2 years to recover (assuming we don't dip back below that level again)
meanwhile the two times that ratio was lowest were 1982 and 2009, two of the best years ever to buy stocks
seems fairly useful to me
