Who lost the argument for market cap to gdp?
It is bs theory. I gave above three examples.
Do you know Palestine stock exchange has higher return than KSE. It has provided 20% return from inception.
Do you thing PSE is better than KSE? Even both countries run on AID.
BSE and KSE are in different category. They can't be compared.
As some one said reliance industry alone is worth more than entire KSE.
Valuation depends on future earnings and earning growth.
Of course, investors consider PE ratios, and market-cap to GDP ratios etc. Legendary investors like Warren Buffett look at both.
As Seeking Alpha post said last year, "Whenever Warren Buffett gives us insight on how he invests, we listen. One point Buffett made recently was to look at the total stock market capitalization compared to GDP. In recent years, the market has done better when this ratio is in the 80% range than when stocks are valued above GDP. This showed itself to be true most prominently during the dot com bubble." Using Market Capitalization / GDP as a Valuation Metric -- Seeking Alpha
As to comparing different markets, your response shows your desperation. In the global capital market, smart investors compare all options when investing. BRIC, N11, US, Europe, Middle East, Asia, etc, etc.
And don't pooh pooh the Palestinian people. In spite of the brutal Israeli occupation, Palestine also ranks much higher than India or Pakistan in human development. It shows the potential of the people if they are allowed to live as a free nation.