Recently, estimates of American stock market valuations reached their most extreme in US financial history.
The Wilshire 5000-to-GDP ratio sits at around 200% — higher than the ratio preceding the 1929 stock market mania, the 2000 dot-com bubble as well as the 2007-2009 Global Financial Crisis. At the same time, American households are loaded up on stocks. In fact, equities account for 40% of US households’ total allocation of financial assets, which is more than at previous market peaks.