Domestic Market Capitalization

It is a hard number to find. Significant to our economy, the total market capitalization far exceeds the total amount of money in circulation. As one would expect the total value of all our companies varies both as they grow and as the perception of their worth changes. The market grows and the market breaths. As it does so, it inhales and exhales trillions of dollars and it tends to grow by trillions each year. For example:

The total domestic market capitalization on 12/31/24 was $37.3 trillion. At the end of 2003, it was $31.3 trillion, and on the same date at the end of 2002, it was $22.2 trillion. That growth or contraction indirectly contributes to or reduces liquidity, capital investment R&D and ultimately your standard of living.

The depression of 2000 took away some six or seven trillion. One might arguably blame the disaster on a failure of regulators and the communication industry. It was a failure to keep pace with the growth of computer technology and the Internet, with deployment of bandwidth to the periphery, to the edge, as IP would put it. The old practice of creating demand through engineered scarcity and price to milk demand did not work. Moor’s Law was and is the paradigm of technology. When high prices and engineered scarcity, blocked high-speed connection to the consumer, the bubble of expectation burst and the market wheezed. The perception of value plummeted.

Another reflection of liquidity can be seen in the Daily Tax Deposits. Year to date, as of the 9th, we are running 8.42% ahead of last year, and for month to date we gained 3.1%.

This is from your bush economist so keep it in perspective. There are a lot of fragmented statistics out there with mud slinging or over optimism attached Keep track of your Ts.