What is Total Market Cap and Federal GDP (simply explained in 1 minute by a Data Scientist)?!
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Lets start with Total Market Cap!
Total Market Cap = The total amount of money invested in the US Stock Market (our simplistic definition, by the way)!
For a regular company this would be the total value of their Stocks.
This would be done by multiplying the Stock Price by the number of Outstanding Shares (shares purchased by the public).
What is Outstanding Shares?
What is GDP?
The GDP is Gross Domestic Product. We are quite sure you knew that already. It is typically measured by total money spent or total income recorded in a given year, quarter, day, and etc.
“As of today, the Total Market Index is at $ 33816.2 billion, which is about 173.5% of the last reported GDP. The US stock market is positioned for an average annualized return of -2.5%, estimated from the historical valuations of the stock market. This includes the returns from the dividends, currently yielding at 1.72%.” ~ GuruFocus.com
