U.S. private sector financial assets have reached a record 6.7 times GDP, surpassing the previous all-time high in 2021 and more than doubling since the 1970s.
This surge highlights the massive expansion of financial markets, with Wall Street now larger than ever relative to the real economy.
Analysts suggest that this growing divergence between financial assets and underlying economic activity may raise concerns about the sustainability of current valuations, particularly in an environment heavily influenced by liquidity and monetary policy