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> The US has about 60% of the global investable public equity market by market cap but only 25% of global GDP. GDP doesn't matter for equity valuations, excess
by reducesuffering 5y ago
> The US has about 60% of the global investable public equity market by market cap but only 25% of global GDP.
GDP doesn't matter for equity valuations, excess profits captured by a company do. If 99% of companies are in intense competition and make no profit, only enough income to pay their expenses, but one company comes up with a new product no one else can make, they can charge whatever maximizes profit and that's where equity value comes from.