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Monthly Chart Pack

Monthly Chart Pack - August 2026

Tuesday, 04 August 2026, written by Henk-Jan Pijper

Our Chart-pack brings together hundreds of macroeconomic and financial market indicators in one place, offering a comprehensive overview of global, regional and country-level developments. From economic activity and inflation to financial markets and valuations, it provides an efficient way to monitor trends and compare key metrics across countries.

The chart below highlights one example. The Buffett Indicator - the ratio of the total US stock market capitalisation (Wilshire 5000 index) to nominal GDP - recently reached a new all-time high. Like many other long-term valuation measures, it suggests that the US stock market is trading at historically elevated valuation levels.

Historically, such extreme readings have been associated with lower long-term expected returns and increased vulnerability to a larger market correction, particularly as valuations tend to revert towards their long-run averages over time. However, valuation metrics are poor market-timing tools. Markets can remain expensive - or become even more expensive - for extended periods before valuations begin to normalize.

 

 

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