The Q-ratio, which is simply the equity market value of nonfarm, nonfinancial businesses divided by the net worth of those businesses, is at it’s highest level since December 2000. Since 1945, the average level is 0.70. The current reading is over 1 standard deviation above the nearly 70-year average. The Q-ratio has shown that it can stay at elevated levels for an extended period of time. The Q-ratio was higher for most of the 1997-2000 period than it is today.