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Buffett Indicator hits above 200%: Will this time be different?
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Buffett Indicator is the percentage of the total market cap relative to the US GDP, which is probably the best single measure of where valuations stand at any given moment.
Warren Buffett said 75% to 90% are reasonable; over 120% suggests the stock market is overvalued. As of Aug 28 2021, the Total Market Index is at US$ 46.88 trillion, about 206%of the US GDP, signaling the market is heavily overvalued.
Do you think the Buffett Indicator is useful? Should we pay close attention or just ignore it? What should we do in response to such an indicator?
Warren Buffett said 75% to 90% are reasonable; over 120% suggests the stock market is overvalued. As of Aug 28 2021, the Total Market Index is at US$ 46.88 trillion, about 206%of the US GDP, signaling the market is heavily overvalued.
Do you think the Buffett Indicator is useful? Should we pay close attention or just ignore it? What should we do in response to such an indicator?
Buffett Indicator is the percentage of the total market cap relative to the US GDP, which is probably the best single measure of where valuations stand at any given moment.
Warren Buffett said 75% to 90% are reasonable; over 120% suggests the stock market is overvalued. As of Aug 28 2021, the Total Market Index is at US$ 46.88 trillion, about 206%of the US GDP, signaling the market is heavily overvalued.
Do you think the Buffett Indicator is useful? Should we pay close attention or just ignore it? What should we do in response to such an indicator?
Warren Buffett said 75% to 90% are reasonable; over 120% suggests the stock market is overvalued. As of Aug 28 2021, the Total Market Index is at US$ 46.88 trillion, about 206%of the US GDP, signaling the market is heavily overvalued.
Do you think the Buffett Indicator is useful? Should we pay close attention or just ignore it? What should we do in response to such an indicator?
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it's popular and well reputate, however it's called an indicator for a reason, it's only a guideline, in the end you alone are the one to call the shot.
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The indicator factor in the inflation, interest rate ,but key regulator to the market pullback/ correction, which i believe much much depend on Fed monetary policy, bond purchase tip off time....
Announcing the winners: A closer look at Buffett Indicator
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“A closer look at Buffett Indicator: Will this time be different?” has come to an end. We received hundreds of inspiring and fascinating posts from beautiful mooers. We want to thank you all for sharing your unique ideas and giving us unique hints. Here are some great contents that you probably don't wanna miss!
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“A closer look at Buffett Indicator: Will this time be different?” has come to an end. We received hundreds of inspiring and fascinating posts from beautiful mooers. We want to thank you all for sharing your unique ideas and giving us unique hints. Here are some great contents that you probably don't wanna miss!
@HopeAlways Congrats on winning 2000 Points！
@Grandpa SqueezeCongrats on winning 2000 Points！
@战神鑫爷 Congrats...
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Buffet Indicator
To some extent, i think the Buffet indicator is an useful indicator which provides a general sensing of the stock market at large.However, it should be used in conjunction with other economic and market data to provide a sharper analysis and more comprehensive view. At this juncture, there seems to be a consensus that the market is ‘overheating’ and correction will be taking place soon (especially in the month of September). So in a way, the Buffet Indicator will prove to be correct again. 
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useless but beware
think it is useless and old fashioned. but if everyone believes it, it will come true i guess. beware and as always, stay invested if you believe in what you are buying.
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Pinch of Salt
Take it with a pinch of salt. Is the indicator dated? Do we self prophesize the crash? invest in the fundamental of the companies if it’s for long term wealth building.
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Buffett indicator is easy to read and to understand!
Indicator of what's to come
I think it is still relevant and a good indicator of what is to come. Historically, whenever the indicator is above GDP, a crash will follow. case in point, 2000 dot.com bubble burst and 2007 financial crisis. I don't think you should stop investing or dump all stocks now, because no one know when, or if, the market will come crashing now. But it is nevertheless important to be prepared. I'm sticking to DCA. Prices go up, buy. Prices go down, also buy. As long as the stock you invest in is fundamentally good, it'll eventually go up again, and probably higher....
Buffett indicator
As a ratio of tota stock market valuation to GRP, the value is probably a good gauge on how valued the market is. I will heed
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