The market value of all U.S. corporate equity now exceeds 400% of GDP, an unprecedented level surpassing the 2000 dotcom bubble peak of 204% and the 1987 Black Monday pre-crash level of 74%, according to David Kelly, chief global strategist at JPMorgan Asset Management. This historic valuation, measured by a metric similar to the Buffett Indicator above 200%, is largely driven by AI enthusiasm, with $150 billion in unrealized capital gains from just two large technology companies in the second quarter contributing 50% to earnings per share growth. McKinsey Global Institute’s Global Balance Sheet 2026 report confirms that global household wealth reached a record $570 trillion, increasingly decoupled from real economic growth, with U.S. stocks valued at 3.7x GDP at the center of this paper wealth dynamic.
Source: Read the original article
