[Click on the chart to enlarge it]
Long term Capital Appreciation
Gross Domestic Product (GDP) Growth vis-à-vis Capital Appreciation
Market Capitalization as a % of GDP
At the end of 2007 as indicated at Point B, the market capitalization in Bursa Malaysia again exceeded our GDP by RM465 billion. The market capitalization as a % of GDP ratio of 1.73x indicates that stocks were possibly overvalued, although on less excessive scale as compared to 1996.
Where are we now?