In a world where nothings allowed to crash.[/quote]
The problem with this measure is that the percentage of companies that are publicly traded has gone up over the years. 30 years ago big investment banks, like Goldman Sachs, were LLCs and not traded. I’m sure other companies that were private went public as well. So the numerator of this indicator went up without adjusting the denominator causing the indicator to skew.
(Not sure the change in the percent of companies that have gone public that previously would have been private is enough to justify the rise, but it’s certainly a consideration)
