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Global Stock Market Valuations and Expected Future Returns
I do think there is a rather big flaw in using Market Cap/GDP as a valuation measure for emerging markets though. It assumes that their companies are undervalued when in reality it could just mean that a large portion of the companies that contribute to their GDP are not public. Their market cap is likely to increase through the IPO of new companies....not necessarily a rise in valuations of their current companies.
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