The Paper Wealth Paradox: When Markets Diverge from Reality Corporate equity has surpassed 400% of GDP in the US, eclipsing the dotcom bubble and Black Monday valuations.
This is a stark warning sign that the market's disconnect from reality is growing more pronounced by the day.
The surge in corporate equity can be attributed in part to AI fueled exuberance, as evidenced by the S&P 500's 13% year to date gain.