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You should throw, China, Japan, and Russia on that as well.


"In the first chart below we highlight a ratio of the S&P 500 to the S&P 500 Bank group going back to 1940. When the ratio is rising, the financials are getting weaker relative to the S&P 500 as a whole. As shown, the ratio is currently as high as it has been over the entire time period, meaning the banks are as small as they've been relative to the overall index."

Can you clarify exactly what is on the numerator and denominator of this ratio?

It's clearly not (market cap of S&P500)/(market cap of S&PBanking) - as that would suggest banks made up 75% of the index in the 1940s-50s...

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