By : Kenneth De Zilwa
The stock market rally can be put into context by analyzing its market capitalizations as percentage and Gross Fixed Capital Formations as a percentage of GDP
The long term Market Capitalization as percentage indicates that that the Global markets as overbought and that a correction is in order.
The previous three occasion were 1997-1999 the Japan Asset bubble in and US banking crisis in trigged the fall. In 2000-2001 it was the US dotcom bubble and finally in 2007-2008 the US mortgage and derivative bubble.