Strategy Note / Global

Emerging and Frontier: Way behind Developed on Buffet Indicator (in one chart)

  • Market cap to GDP ratio is a gauge of market valuation: EM and FM a long way behind DM and their own 10y averages
  • Varying penetration of technology stocks, privatisation, multinationals, private equity cloud comparison across regions
  • But discount to historic average is undeniable and implies an attractive entry point for those with longer time frames

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