This Thursday, the Federal Reserve will publish its latest Financial Accounts of the United States for Q2. These are likely to show that the market value of equities issued by US non-financial companies at the end of June was considerably more than those companies’ net worth. Although this would add some weight to the argument that the stock market is overvalued, the ratio of these two numbers – commonly referred to as Equity Q – has nonetheless been biased upwards by the internationalisation of Corporate America.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services